Bank of America story updated with details on mortgage servicing agreement in final paragraph.NEW YORK ( TheStreet) -- Bank of America ( BAC) just saw the heat turned up again in its multipronged, multibillion-dollar legal battle over problem mortgages, according to an analyst report published Wednesday. The latest trouble for the banking giant is a decision by MBIA ( MBI) to "cross-appeal" a judge's ruling last month that was widely interpreted as being favorable to the bond insurer in its legal battle with Bank of America. MBIA filed its cross-appeal in New York State Supreme Court on Monday.
Paul Miller of FBR Capital Markets has come up with similar estimates, though he sees an outside chance losses could turn out to be many multiples of that . Spokesmen for Bank of America and MBIA declined to comment. Bank of America shares were up 1.6% to $8.26 early Thursday afternoon following an agreement between the nation's five largest mortgage servicers, including Bank of America, Citigroup ( C), Wells Fargo ( WFC), JPMorgan Chase ( JPM) and Ally Financial with 49 attorneys general and the Obama Administration. As part of the deal, the banks will pay $25 billion to resolve mortgage servicing issues such as "robosigning," an attempt by banks to speed up the foreclosure crisis by cutting corners. -- Written by Dan Freed in New York. Follow this writer on Twitter.
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