New York Federal Court Denies BofA’s Motion for Reconsideration in FHFA Case

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On December 18, 2012, Judge Denise Cote of the United States District Court for the Southern District of New York denied Bank of America’s motion for reconsideration of the denial of its motion to dismiss claims brought by FHFA. Bank of America argued that FHFA could not bring claims under Sections 11 and 12(a)(2) with respect to ten certificates issued before a final prospectus was filed. The court held that under Section 11, FHFA may assert claims based on commitments to purchase that were made before the filing of a final prospectus. Judge Cote further held that Bank of America’s arguments under Section 12(a)(2) and Rule 159 involve factual issues that cannot be resolved at the motion to dismiss stage. Decision.