The amount of putbacks that Bank of America is being challenged for has grown to $84 billion. This covers 225 securitized deals, rising from $46 billion covering 115 deals in October, according to a Bloomberg report.

Investors challenging the bank include Pacific Investment Management Co. (PIMCO), BlackRock and the Federal Reserve Bank of New York, according to the report.

The group is represented by Kathy Patrick, a partner at the Houston based firm  Gibbs & Bruns. 

BofA in its recently filed annual report estimated that it faces between $145 million and $1.5 billion in expenses tied to lawsuits in 2011.

Last week, according to a WSJ report, banks were estimated to be in the hook to the tune of $20 billion settlement for alleged mortgage servicing breakdowns.

However, securitization market players believe that a resolution to the lawsuits is still sometime away and not likely an issue that will be resolved in the short term.

"The market has not yet priced in any value for the potential settlements," said Scott Buchta head of investment strategy at Braver Stern Securities. "We think that this fight will continue to be drawn out, although the growing number of investors being drawn into the fray may put increased pressure on BofA."


Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.