On Monday, Bank of America Corp announced a new round of settlements designed to resolve lingering claims related to its Countrywide Financial acquisition in 2008, including an $11.6 billion agreement with Fannie Mae over requests to buy back soured home loans.
But the No. 2 U.S. bank by assets still faces a number of unresolved cases related to its mortgage business. Here are major ones:
-The bank is awaiting court approval of an $8.5 billion settlement with investors in failed mortgage-backed securities issued by Countrywide.
-Bond insurers, including MBIA Inc and Ambac Financial Group, filed lawsuits against the bank over alleged misrepresentations of the quality of loans underlying securities they insured for Countrywide. CIFG Assurance North America Inc filed a case against Bank of America over insurance policies for mortgage-backed securities in November.
-American International Group Inc’s lawsuit against the bank over billions in mortgage-backed securities remains pending. AIG sued Bank of America in 2011, accusing the bank and its Countrywide and Merrill Lynch units of misrepresenting the quality of mortgage-backed securities the insurer bought.
-The U.S. Department of Justice filed a case against Countrywide and Bank of America in October accusing it of causing $1 billion in losses in the way Countrywide approved mortgages destined for purchase by Fannie Mae and Freddie Mac . That lawsuit was not part of Monday’s settlement.
(Reuters)