Ambac Sues Countrywide, Alleging False Information On MBS

By Erik Holm

Ambac Financial Group Inc. (ABK) sued Bank of America Corp. (BAC) over “false and misleading” information it says the bank’s Countrywide unit provided to trick it into insuring mortgage-backed bonds.

Ambac filed suit after a review of 6,533 of the home loans — just a fraction of the 268,000 loans included in 12 mortgage-backed securities it insured for Countrywide. The review found more than 97% of the loans didn’t meet the guidelines Countrywide had said they’d followed in assembling the bonds, according to the complaint filed Tuesday in New York State Supreme Court.

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