Because MBIA has done some examination on the mortgages on which they’re paying off and MBIA is finding a very high rate of origination fraud.
BofA has now lost their last refuge for a fraudster, ie, being able to cook the numbers. MBIA’s results from their examination of the claims they’ve already paid are so overwhelming that BofA has almost no hope of escaping a put-back now.
And in doing so score a win for the homeowners at the same time!
Merry Christmas!