Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

Mortgage Fraud Risk Down in Q3 2014


selectedloans.com | February 16, 2015

By Ben Lane

Feb 6 (Reuters) - A federal judge has thrown out much of Prudential Financial Inc's lawsuit accusing Bank of America Corp of defrauding it before the financial crisis into buying more than $1.9 billion of residential mortgage-backed securities that later soured.

In a decision on Thursday, U.S. District Judge Stanley Chesler in Newark, New Jersey, said Prudential did not show that Bank of America and its Merrill Lynch unit lied to rating agencies about the quality of loans backing its securities.

He also said Prudential could not rely on "after-the-fact" computer analysis to show the defendants knew when arranging the 54 securitizations at issue from 2004 to 2007 that property appraisals were being systematically inflated.

Chesler, who previously dismissed Prudential's racketeering claim, threw out most of the Newark-based insurer's remaining claims with prejudice.

He said Prudential may resubmit one claim involving 21 securitizations where the defendants acted as underwriters, not sponsors or issuers. The judge did not rule on Prudential's "equitable fraud" claim.

Prudential spokesman Scot Hoffman and Bank of America spokesman Lawrence Grayson declined to comment.

The lawsuit said Bank of America's "wide-ranging fraud" left Prudential stuck with securities backed by "countless" home loans that went into default or foreclosure, or lacked proper title.

Prudential said 51.8 percent of the 20,906 home loans it examined had at least one material defect.

Bank of America, the second-largest U.S. bank, in August reached a $16.65 billion settlement with federal and state authorities to resolve many of its mortgage-related liabilities linked to the recent U.S. housing and financial crises.

The Charlotte, North Carolina-based bank plans to appeal a $1.27 billion civil penalty imposed in a U.S. government lawsuit accusing its Countrywide unit of defrauding government-controlled mortgage companies Fannie Mae and Freddie Mac into buying questionable home loans.

U.S. District Judge Jed Rakoff in Manhattan set that penalty last July, and on Tuesday rejected Bank of America's request to overturn it.

The case is Prudential Insurance Co of America et al v. Bank of America NA et al, U.S. District Court, District of New Jersey, No. 13-01586. (Reporting by Jonathan Stempel in New York; Editing by Lisa Von Ahn).


Back to February 2015 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package