Daily News: January 5, 2015

Ambac Sues Bank of America Over Countrywide MBS

Reuters reported that Ambac Assurance sued Bank of America to recoup losses from insuring nearly $1.7 billion of securities backed at least in part by risky mortgages from the bank’s Countrywide Home Loans unit.

Reuters notes that Ambac accused Countrywide of lying about how well it underwrote so-called “pay option adjustable-rate mortgage negative amortization” loans that backed the securities.

According to Reuters , the securities were issued on eight transactions between 2005 and 2007.

To read the entire Reuters report, click here.