DOJ to file civil charges against BofA over jumbo RMBS
Bank of America’s (BAC) legal troubles in the mortgage space are far from over.
The firm, which took over Countrywide’s legacy subprime business in the wake of the financial crisis, notes in a securities filing that the Department of Justice plans to file civil charges against the bank and related entities over two jumbo prime mortgage securitizations.
BofA reported this development in its 10-Q filing with the Securities and Exchange Commission.
The SEC intends to issue civil charges concerning one of the securitizations, the bank claims in its latest filing.
The New York Attorney General also gave the banks a heads up, saying it plans to recommend charges against BofA unit, Merrill Lynch, as it winds down an investigation related to residential mortgage-backed securities.
Merrill Lynch activities associated with collateralized debt obligations also are the subject of an SEC probe, and the agency said its considering civil charges on that front as well.