Bank of America's (BAC) loan-servicing unit carried out problematic mortgage modifications after...

|About: Bank of America Corporation (BAC)|By:, SA News Editor

Bank of America's (BAC) loan-servicing unit carried out problematic mortgage modifications after it bought Countrywide, court documents allege. The filings are part of a lawsuit by three Federal Home Loan Banks and an investment vehicle which argues BofA's proposed $8.5B deal to compensate investors who suffered losses because of Countrywide's mortgage abuses is not enough. The documents could raise new doubts about whether a judge will approve the deal.