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Photo of Bank of America ATM Machine by Brian Katt, Framingham Rest Stop, Massachusetts. (Photo credit: Wikipedia)
Bank of America last week agreed to pay investors who claim they were misled into buying risky mortgage debt $500 million—the most ever paid to settle a federal class action over mortgage-backed securities, Reuters reports.
Investors, including public and union pension funds, claimed they were misled about the risks of securities they bought from Bank of America’s Countrywide unit between 2005 and 2007, when Countrywide was the largest U.S. mortgage lender and specialized in loans to people with weak credit histories.
Read the full article from Reuters here.
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