Shirley Norton, a spokeswoman for Charlotte, North Carolina-based Bank of America, said in an e-mailed statement that the bank was gratified by the judge’s decision after determining the bank and “NB Holdings should not be required to answer claims that it succeeded to the legacy Countrywide entities’ liabilities by virtue of allegations involving, among other things, the merger transaction with Countrywide Financial” and the bank’s purchase of some “legacy Countrywide assets for value.”
Is this a significant case that favors homeowners snared in CW and the MERS system and sued by BOA/BAC Home Loan Servicing, LLC, FKA Countrywide Home Loan Servicing, LLC?
For a moment, let's set aside the cases against MERS. If BOA's filing argued that CW remained "a separate, wholly owned subsidiary of the bank," and the judge dismissed BOA from the suit, does this mean neither BOA nor BAC is a MERS successor because the MERS agreement dropped off a cliff in 2008?
I am certain that all the names of these financial entities are meant to confuse and sidestep--BOA, BAC, NB Holdings, CW Financial, CW Home Loans, Inc., and CW Home Loan Servicing, etc. But it all comes back to the parent company, BOA.
April 23 (Bloomberg) -- Bank of America Corp. was dismissed from a lawsuit brought by investors who bought mortgage-backed securities sold by Countrywide Financial Corp., the home lender Bank of America acquired in 2008.
U.S. District Judge Mariana Pfaelzer granted Bank of America’s request to dismiss the claim against it on grounds that it can’t be held liable for actions of a unit, according to an April 20 order filed in Los Angeles.
The investors failed to show that two separate transactions in 2008, whereby Bank of America, through a subsidiary, acquired and transferred the Countrywide assets, were a “de facto” merger, Pfaelzer said.
The judge had dismissed the lawsuit in November, saying the investors didn’t sufficiently demonstrate they suffered an injury for the securities they bought, and that the statute of limitations had expired for some claims. The judge allowed the plaintiffs to file an amended complaint to address these failings before she would rule on Bank of America’s Aug. 20 request to dismiss it from the complaint.
Bank of America said in its August. 20 filing that Countrywide remained a separate, wholly owned subsidiary of the bank and that, as a parent company, it can’t be held liable for the mortgage lender’s alleged wrongdoing....