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Mortgage Bond Investors’ Suit Against Countrywide Goes to State Court 

Aug 21, 2009By

A US district judge this week decided not to take action on a lawsuit filed against Countrywide Financial by investors in mortgage-backed securities. The suit claims Countrywide’s decision to modify mortgage loans up to $8.4bn violates contracts held by investors in the securitizations where some of those loans live. The investors involved in the suit are asking that Countrywide purchase any loan it intends to modify out of the respective securitization and absorb the losses taken on modifications.

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