The Resolution Law Group: Bank of America’s Countrywide to Pay $17.3M RMBS Settlement to Massachusetts

According to Massachusetts Attorney General Martha Coakley, Countrywide Securities Corp. (CFC) will pay $17 million to settle residential mortgage backed securities claims. The settlement includes $6 million to be paid to the Commonwealth and $11.3 million to investors with the Pension Reserves Investment Management Board. Countrywide is a Bank of America (BAC) unit.

Coakley’s office was the first in the US to start probing and pursuing Wall Street securitization firms for their involvement in the subprime mortgage crisis. Other RMBS settlements Massachusetts has reached include: $34M from JPMorgan Chase & Co. (JPM), $36M from Barclays Bank (ADR), $52 million from Royal Bank of Scotland (RBS), $102 million from Morgan Stanley (MS), and $60 million from Goldman Sachs. (GS).

Meantime, a federal judge is expected to rule soon on how much Bank of America will pay in a securities fraud verdict related to the faulty mortgages that Countrywide sold investors. A jury had found the bank and ex-Countrywide executive Rebecca Mairone liable for defrauding Freddie Mac and Fannie Mae via the sale of loans through that banking unit. The US government wants Bank of America to pay $863.6 million in damages. Mairone denies any wrongdoing.

The case focused on “High Speed Swim Lane,” a mortgage lending process that rewarded employees for the volume of loans produced rather than the quality. Checkpoints that should have made sure the loans were solid were eliminated.

In other recent Countrywide news, a federal judge has given final approval to Bank of America’s $500 million settlement with investors who say the unit misled them, which is why they even invested in high-risk mortgage debt. A number of investors, including union and public pension funds, said they were given offering documents about home loans backing the securities that they purchased and that the content of this paperwork was misleading. They contend that a lot of securities came with high credit ratings that ended up falling to “junk status” as conditions in the market deteriorated.

This payout is the biggest thus far to resolve federal class action securities litigation involving mortgage-backed securities. The second largest was the $315 million reached with Merrill Lynch (MER), which is also a Bank of America unit. That agreement was approved in 2012.

Also, Bank of America was recently named the defendant in a lawsuit filed by the California city of Los Angeles over allegedly discriminatory lending practices that the plaintiff says played a part in causing foreclosures. LA is also suing Citigroup (C) and Wells Fargo (WFC).

The city says that Bank of America offered “predatory” loan terms that led to discrimination against minority borrowers. This resulted in foreclosures that caused the City’s property-tax revenues to decline. BofA, Wells Fargo, and Citibank have said that the claims are baseless.

If you feel you are the victim of Securities Fraud, please do not hesitate to email or call the The Resolution Law Group (203) 542-7275 for a confidential, no obligation consultation.

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The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.

While the “fiscal cliff” drama received all the headlines this past week, the United States Government quietly, but firmly, confirmed the partnership it has with big banks, and Congress and Congressmen continue to receive personal benefits from banks in exchange for bailouts and governmental protection, without any regard for conflicts of interest or ethical violations.

Geoffrey Broderick, Esq., the senior partner of The Resolution Law Group, says “it is no surprise that homeowners cannot rely on Congress to police those members who received favors from Countrywide.” The pending litigation aims to provide substantial relief for homeowners.

The United States Congress performed some year- end housecleaning, and The House Ethic Committee just announced that NO ETHICS BREACHES were found among House members and its investigation involving the scandal surrounding Countrywide “VIP Loans” and the “Friends of Angelo.”

Back in July, 2012, another House Committee, for Oversight and Government Reform, found that “Countrywide used its VIP Program to aid its lobbying efforts as well as to strengthen its relationship with taxpayer backed Fannie Mae.” Despite that finding, Congress isn’t going to do anything about the rampant conflicts of interest.

Specifically, the Oversight and Government Reform Committee found that: “Countrywide lobbyists and CEO Angelo Mozillo used discounted loans as a tool to ingratiate itself with policymakers in an effort to benefit the company’s business interests.” VIPs included Members and employees of Congress, the White House, Fannie Mae, Freddie Mac, federal agencies, and other governmental entities.

Actually, the House Ethic Committee found that it was improper for at least six current and former Members of Congress to ask for and receive discounted loans from Countrywide, but that this occurred more than six years prior to the current Congress, so the Committee lacked jurisdiction to impose any discipline or further investigate possible wrongdoing.

Despite this latest “news,” Mr. Broderick says that this is “business as usual for Congress” and that “only through litigation can any meaningful relief be obtained for injured borrowers.”

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, prospective clients are invited to call the law firm or visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

The Resolution Law Group: $500M MBS Settlement Reached Between Countrywide and Investors

Class action securities plaintiffs, led by the Iowa Public Employees’ Retirement System, have settled their mortgage-backed securities lawsuit against Countrywide for $500 million. This is the largest federal class action MBS securities case in the US that has been resolved to date, even exceeding the $315 million settlement reached with Bank of America’s (BAC) Merrill Lynch (MER) last year.

Per the investors, Countryside, which was acquired by BofA, sold them billions of dollars in MBS certificates that were backed by defective loans. Toward the end of 2008, nearly all of the certificates were relegated to junk bond status.

The plaintiffs allege that offering documents for the mortgage-backed bonds failed to disclose that Countrywide was ignoring its own guidelines regarding home loan originating. In their consolidated class action securities case, investors sought over $351 billion of the Countrywide MBS that had been downgraded after the subprime collapse in 2007. (A district judge would go on to narrow the mortgage-backed securities lawsuit to $2.6 billion in bonds and Bank of America was dismissed as a defendant.)

According to Bank of America, this securities settlement resolves approximately 80% of the principal balance of RMBS that were issued by Countrywide and has not yet been paid. However, now there is news that American International Group can go ahead and file its RMBS lawsuit against Countywide. A judge said that the insurer could pursue claims accusing the latter of making false representations in offering documents that it had abided by underwriting guidelines. It was just earlier this week that Bank of America settled with bond insurance company MBIA Inc. over Countrywide for $1.6 billion.

The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, mortgage backed securities, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.  The Resolution Law Group is currently enrolling clients into pending lawsuits.

For further information, prospective clients are invited to call the law firm or visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud

PRESSWIRE: The Resolution Law Group

/EINPresswire.com/ The Resolution Law Group continues to prosecute ground breaking litigation in Federal Court on behalf of homeowners suing lenders and servicers for, among other things, the illegal use of MERS, robo-signing, and intentionally ignoring underwriting standards and encouraging inflated appraisals.While the “fiscal cliff” drama received all the headlines this past week, the United States Government quietly, but firmly, confirmed the partnership it has with big banks, and Congress and Congressmen continue to receive personal benefits from banks in exchange for bailouts and governmental protection, without any regard for conflicts of interest or ethical violations.

Geoffrey Broderick, Esq., the senior partner of The Resolution Law Group, says “it is no surprise that homeowners cannot rely on Congress to police those members who received favors from Countrywide.” The pending litigation aims to provide substantial relief for homeowners.

The United States Congress performed some year- end housecleaning, and The House Ethic Committee just announced that NO ETHICS BREACHES were found among House members and its investigation involving the scandal surrounding Countrywide “VIP Loans” and the “Friends of Angelo.”

Back in July, 2012, another House Committee, for Oversight and Government Reform, found that “Countrywide used its VIP Program to aid its lobbying efforts as well as to strengthen its relationship with taxpayer backed Fannie Mae.” Despite that finding, Congress isn’t going to do anything about the rampant conflicts of interest.

Specifically, the Oversight and Government Reform Committee found that: “Countrywide lobbyists and CEO Angelo Mozillo used discounted loans as a tool to ingratiate itself with policymakers in an effort to benefit the company’s business interests.” VIPs included Members and employees of Congress, the White House, Fannie Mae, Freddie Mac, federal agencies, and other governmental entities.

Actually, the House Ethic Committee found that it was improper for at least six current and former Members of Congress to ask for and receive discounted loans from Countrywide, but that this occurred more than six years prior to the current Congress, so the Committee lacked jurisdiction to impose any discipline or further investigate possible wrongdoing.

Despite this latest “news,” Mr. Broderick says that this is “business as usual for Congress” and that “only through litigation can any meaningful relief be obtained for injured borrowers.”

The Resolution Law Group is currently enrolling clients into the pending lawsuit. For further information, prospective clients are invited to call the law firm or visit its website at www.TheResolutionLawGroup.com

Lender Litigation, Unlawful Foreclosure, Tarp Money, Mortgage Backed Securities, Derivitives Lawsuits, Insider Trading Lawsuit, SEC Settlements, Ponzi Scheme Lawsuits, Intentional Misrepresentation, Securitized Mortgage, Class Action Securities Lawsuit, Robo-Signing Lawsuit, Lost Equity Litigation, Mortgage Lender Fraud, FINRA Fraud Lawsuit, Suing Banks, Fraudulent Misrepresentation, Short Sale Fraud, Fraudulent Business Practices, Mortgage Litigation, Complex Tort Litigation, Injunctive Relief, MERS Fraud