(Source: Forbes) – Just when you think you’re caught up on all the troubles Bank of America is having with mortgage-related fraud, there’s another story. A group of bondholders calling themselves Walnut Place challenged the bank’s most recent settlement with bondholders for $8.5 billion.Susan Kapner in The Financial Times, July  5, 2011:

“…The Walnut Place investors said that as many as two-thirds of the loans in two Countrywide trusts failed to meet underwriting guidelines, according to their own investigation. Extrapolating that failure rate to the 530 trusts covered by the bank’s settlement, the Walnut Place investors concluded that BofA could be liable to repurchase loans with unpaid principal balances of as much as $242bn.”

Source: Forbes

Jul. 6 2011 – 2:19 pm

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