| "according to new documents filed in state Supreme Court in Manhattan late on Friday, questionable practices by the bank's loan servicing unit have continued well after the Countrywide acquisition; they paint a picture of a bank that continued to put its own interests ahead of investors as it modified troubled mortgages...Even as the bank's loan modifications imposed heavy losses on investors in these securities, Bank of America did not reduce the principal on second mortgages it owned on the same properties. The owner of a home equity line of credit is typically required to take a loss before the holder of a first mortgage"... Also,"Bank of America kept its $170,000 home equity line intact on a property while modifying the first mortgage held by investors who took a $395,000 loss..."the settlement with a handful of Countrywide mortgage securities holders" led to a $425 billion loss. |
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At www.nytimes.com
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