Judge Dismisses Most Claims Against Bank of America in RMBS Suit

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago in Daily Dose, Featured, News, Secondary Market Share Save Previous: Ratings Agency Lowers Ocwen’s Risk Assessment Rankings, Citing Regulatory Troubles Next: DS News Webcast: Monday 2/9/2015 Judge Dismisses Most Claims Against Bank of America in RMBS Suit Demand Propels Home Prices Upward 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Home / Daily Dose / Judge Dismisses Most Claims Against Bank of America in RMBS Suit The Best Markets For Residential Property Investors 2 days ago Tagged with: Bank of America Prudential Financial Residential Mortgage-backed securities RMBS  Print This Post Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago A federal judge in New Jersey dismissed most of a lawsuit filed by Prudential Financial Inc. against Bank of America which claimed the North Carolina-based megabank sold them more than $1.9 billion worth of toxic mortgage-backed securities in the run-up to the financial crisis, according to multiple media reports on Friday.U.S. District Judge Stanley Chesler in Newark ruled that Prudential failed to show sufficient proof that Bank of America and its Merrill Lynch misrepresented the quality of its loans backing securities to ratings agencies, according to reports.Prudential claimed in the lawsuit that Bank of America was guilty of “wide-ranging fraud” that left Prudential with “countless” bad securities that led to foreclosure or default. Chesler dismissed most of Prudential’s claims with prejudice, according to reports. He did rule that Prudential could re-submit a claim involving 21 securitizations where Bank of America acted as underwriter but not as a sponsor or issuer.Chesler said in his ruling that Prudential could not rely on “after the fact” computer analysis to determine that Bank of America knew at the time that the property appraisals for 54 securitizations it issued from 2004 to 2007 were being misrepresented.Spokespeople from both Prudential and Bank of America declined to comment on the suit and the judge’s ruling.Bank of America has had its share of legal troubles over RMBS in the last year. In August 2014, the bank entered into a settlement with the U.S. Department of Justice for record $16.65 billion over the packaging and selling of toxic mortgage-backed securities that led to the financial crisis. Earlier this week, a federal judge in Manhattan denied the bank’s request to remove a $1.27 billion penalty imposed in July 2014 for a government lawsuit against the bank which accused its Countrywide unit of fraud with regards to mortgage-backed securities. Sign up for DS News Daily Bank of America Prudential Financial Residential Mortgage-backed securities RMBS 2015-02-06 Brian Honea About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago February 6, 2015 1,020 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more