Four years on from the financial crisis, Bank of America continues to see its mortgage repurchase claims grow, although the company has set aside major reserves to cover expected putback and legal costs, mainly springing from the disastrous purchase of Countrywide.
During the second quarter, Bank of America's total mortgage repurchase claims increased by 41% to $22.7 billion as of June 30.
The statute of limitations is running out for 2006 MBS deals, but mortgage loans continued to be packaged during 2007, so we can expect to see the flurry of lawsuits to continue for at least another year.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV