Bank of America Corp. is being investigated by multiple government entities for its securitization activities and could face legal actions. It’s also being investigated for its compliance on government-insured mortgages.
A public filing made on Tuesday indicates that BofA has received multiple subpoenas and other requests for information from regulators and governmental authorities about mortgage-backed securities and other mortgage-related matters.
Among the actions are inquiries, investigations and potential proceedings tied to a number of transactions involving the underwriting and issuance of MBS by BofA and companies it acquired.
In addition, its participation in certain collateralized-debt obligations and structured investment vehicle offerings are being scrutinized.
“These inquiries and investigations include, among others, investigations by the RMBS Working Group of the Financial Fraud Enforcement Task Force, including the DOJ and state Attorneys General, concerning the purchase, securitization and underwriting of mortgage loans and RMBS,” the filing with the Securities and Exchange Commission said. “The corporation has provided documents and testimony, and continues to cooperate fully with these inquiries and investigations.”
The Charlotte, N.C.-based firm said that it has been advised by the staff of the New York Attorney General’s office that they are recommending filing an action against subsidiary Merrill Lynch, Pierce, Fenner & Smith.
In addition, the staff of an unspecified U.S. Attorney’s office advised BofA that they intend to recommend that the Department of Justice file a civil action against BofA affiliates related to the securitization of residential MBS.
Furthermore, the civil division of the U.S. Attorney’s office for the Eastern District of New York is conducting an investigation into BofA’s compliance with Federal Housing Administration direct endorsement program requirements.
BofA said it is cooperating in the FHA investigation.
