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BofA asked to buy back Countrywide loans
CHARLOTTE, N.C., -- Major investors, including the Federal Reserve Bank of New York, have asked Bank of America to buy back mortgages issued by Countrywide, a law firm said.
BofA purchased Countrywide in 2008 for about $4 billion. Now, however, investors are saying Countrywide's mortgages were written without adherence to underwriting standards, The Los Angeles Times reported Wednesday.
In a letter sent to BofA, the law firm, unnamed by the Times, said bondholders wanted the bank to "repurchase … loans that were originated in violation of underwriting guidelines."
The original value of the loans in question come to about $100 billion, the Times said.
BofA Chief Executive Officer Brian Moynihan said the bank would "go in and fight this."
The request, he said, was similar to "people who come back and say 'I bought a Chevy Vega, but I want it to be a Mercedes.'"
CHARLOTTE, N.C., -- Major investors, including the Federal Reserve Bank of New York, have asked Bank of America to buy back mortgages issued by Countrywide, a law firm said.
BofA purchased Countrywide in 2008 for about $4 billion. Now, however, investors are saying Countrywide's mortgages were written without adherence to underwriting standards, The Los Angeles Times reported Wednesday.
In a letter sent to BofA, the law firm, unnamed by the Times, said bondholders wanted the bank to "repurchase … loans that were originated in violation of underwriting guidelines."
The original value of the loans in question come to about $100 billion, the Times said.
BofA Chief Executive Officer Brian Moynihan said the bank would "go in and fight this."
The request, he said, was similar to "people who come back and say 'I bought a Chevy Vega, but I want it to be a Mercedes.'"
