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Challenge to BofA’s modified mortgages

By Saskia Scholtes in New York

Published: December 1 2008 23:40 | Last updated: December 1 2008 23:40

Bank of America is facing a legal challenge over a multibillion-dollar promise to modify home loans for 400,000 borrowers, underscoring one of the biggest obstacles to efforts on reducing foreclosures.

The suit was filed on Monday in New York state supreme court by an investor in mortgage securities issued by Countrywide Financial, which was bought this year by BofA.

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