MBIA (MBI) has scored considerable legal victories in its mortgage-backed securities lawsuit against BofA over losses stemming from Countrywide mortgages.
BofA is reportedly ready to file for an appeal after losing a chance to obtain a higher standard of proof in the case.
Reuters has more:
Bank of America Corp is hoping to appeal a decision earlier this week that would make it easier for bond insurer MBIA to pursue a fraud lawsuit against the bank over $20 billion of Countrywide mortgage-backed securities.
A panel of New York's Appellate Division, First Department, decided Tuesday that MBIA could force Bank of America to buy back loans before they default. The court also said MBIA would only need to show that Countrywide misled it about the securities, not that the misrepresentations caused the losses. Bank of America acquired Countrywide in 2008.