MBIA Inc. (MBI) and Bank of America Merrill Lynch agreed to end a lawsuit the bond insurer filed seeking to recover billions of dollars in payouts on credit default swaps sold against collateralized debt obligations that tanked as the mortgage morass unfolded. MBIA alleged BofAML fraudulently obtained insurance on $5.7 billion of mortgage-backed securities by misstating the quality of subprime home loans, as the bank tried to shed nonperforming loans originated in 2006 and 2007. In a court filing with the New York State Supreme Court, the two parties agreed to voluntarily dismiss the complaint, pay their own attorneys fees and not file the suit again. The companies also are tied up in courts with other lawsuits concerning the restructuring of MBIA and insurance claims on soured mortgages. Write to Kerri Panchuk.