Bank of America Corp., the nation's largest servicer of home mortgages, should repurchase up to $20 billion of loans that were based on wrong or missing information, according to a bond insurer trade group.
More than half the soured home equity credit lines and residential mortgages originated from 2005 through 2007 that insurers examined should be bought back, the Association of Financial Guaranty Insurers says in a letter to B of A CEO Brian Moynihan.
MBIA Inc., Ambac Financial Group Inc. and Assured Guaranty Ltd. are all members of AFGI, and the association said repurchases tied to the group may total $10 billion to $20 billion. AFGI's estimates were first reported by Bloomberg.
B of A has estimated that it faces $11.1 billion of unresolved buyback claims, which it reviews on a "loan-by-loan" basis. The bank declined to comment specifically on the AFGI letter which is dated Sept. 2.
