CA Judge Rules for BofA; BofA Does Not Automatically Carry Successor Liability for Countrywide

A California federal judge dismissed all claims that investors, who bought mortgage-backed securities (MBS) from Countrywide, brought against Bank of America The claims were for purchases made with Countrywide before BofA bought the subprime lender. In essence, the judge was saying Bank of America is not liable for Countrywide’s MBS deals.

The lawsuit was a second attempt by these pension fund investors to sue BofA. The original claims about $352 billion in mortgage bonds were also unsuccessful.

According to online legal news site Law360, the judge granted Bank of America’s dismissal request because the plaintiffs failed to show that two separate transactions between the bank and Countrywide involving the transferring of assets mean a de facto merger. BofA is therefore protected from successor liability.

Very interesting court decision. BofA claims there is no successor interest from Countrywide in regards to investors and RMBS. This would mean that anyone who had a Countrywide home loan has no more obligation. BofA just cut their own throat….http://shortsaledailynews.com/california-judge-rules-for-bank-of-america