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