More BofA

Three of the Federal Home Loan Banks are suing Bank of America alleging that the $8.5 billion settlement is too low.  Most of the allegations against BofA have stemmed from actions by Countrywide prior to being acquired.  This new suit says that nothing much changed because of the acquisition.  BofA violated its agreements with investors who bought the securities that held the mortgages by failing to buy back troubled mortgages in full once it had lowered the payments and principal on the loans.  While loan modifications resulted in big losses for the investors, BofA did not reduce the principal on second mortgages it owned on the same properties.