NY Judges Order BofA to Face Two Mortgage Lawsuits
- Two Manhattan federal judges have ordered Bank of America Corp to face lawsuits accusing the largest U.S. bank of misleading investors about mortgage-backed securities.U.S. District Judge William Pauley on Monday named the Pennsylvania Public School Employees Retirement System as the lead plaintiff in one lawsuit, which combines three cases accusing the bank of processing foreclosures improperly and hiding mortgage debt exposure.
The plaintiffs contended that Bank of America engaged in dollar rolling, in which it concealed risk by transferring mortgage debt to another entity with an understanding that it would buy the debt back after issuing its quarterly financial statements.
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Tags: Lawsuits, Mortgage Lawsuits