For the second time in three weeks, Bank of America has escaped liability in cases involving the Countrywide mortgage business it acquired in 2008. Last month, Manhattan federal district court Judge P. Kevin Castel dismissed claims by two trusts that had bought $43 million of residential mortgage-backed securities from Countrywide. And now BofA has won the dismissal (pdf) of a purported class action brought on behalf of more than 370 trusts that bought securitized mortgages from Countrywide. The trusts had sought a declaration requiring Countrywide to purchase any loan on which it agreed to reduce payments under a 2008 agreement with attorneys general from across the country.
The stakes in the putative class action were quite large. In its agreement with the AGs, Countrywide agreed to reduce payments on hundreds of thousands of mortgages by up to $8.4 billion. But according to the plaintiffs, Countrywide had sold off most of those loans and was determined not to absorb the costs of the payment reductions.
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