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U.S. sues BofA over mortgage-backed securities
U.S. sues BofA over mortgage-backed securities

In twin securities-fraud lawsuits against Bank of America Corp., the federal government is accusing the nation's second-largest lender of lying to investors about supposedly prime loans that more closely resembled subprime "liar loans." The civil suits, filed Tuesday by the Justice Department and Securities and Exchange Commission, focus on $850 million in mortgage-backed securities that BofA issued in 2008. The mortgage bonds included so-called Paper Saver loans that required little documentation of a borrower's income or ability to pay. The suits are the latest in a long string of government and private mortgage-related civil actions targeting banks. BofA has...

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