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BofA’s Countrywide Agrees to $500 Million MBS Settlement

Bank of America Corp.’s Countrywide unit agreed to pay $500 million to settle a lawsuit over billions of dollars in residential mortgage-backed securities that were downgraded to junk.

The accord will end a class action, or group lawsuit, led by the Iowa Public Retirement System, lead plaintiffs’ attorney Steven Toll of Cohen Milstein Sellers & Toll PLLC said today in a statement. The settlement, which couldn’t immediately be verified in court records, requires a judge’s approval, Charlotte, North Carolina-based Bank of America said in a filing with the U.S. Securities and Exchange Commission.