NY Attorney General Reportedly Investigating BOA over Mortgage Securities

by devteam March 1st, 2013 | Share

Reuters is reporting that Bank ofrnAmerica (BOA) is the subject of yet another investigation.  New York State Attorney General EricrnSchneiderman is allegedly looking at the bank’s purchase, securitization, andrnunderwriting of home mortgages.  BOA wouldrnbe the third bank targeted by Schneiderman’s office over securitizationrnpractices.  </p

Reuters took its information from a 10-krnsecurities filing by the bank in which it said it was cooperating with therninvestigation.  In the filing with thernSecurities and Exchange Commission BOA said it could sustain up to $3.1 billionrnin legal losses beyond the amount for which it has reserved. That was up from arnpossible loss above legal reserves of $2.8 billion at the end of the thirdrnquarter.</p

According to Reuters the attorney general’s office has another case pendingrnagainst the bank, a lawsuit filed by then-New York Attorney General AndrewrnCuomo in 2010 against the bank and its former chief executive Ken Lewis overrnthe acquisition of Merrill Lynch during the financial crisis.  </p

BOA has settled dozens of suits, both on its own and in combination withrnother banks and bank-owned subsidiaries, arising out of its lending practicesrnin the several years before the housing crash, its purchase of Countrywide Mortgage,rnand activities of its servicing subsidiary.</p

Neither Schneiderman’s office nor BOA have commented on the Reuter’s report.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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