A New York appeals court ruled that bond insurer MBIA Insurance Corp. can proceed with fraud claims against Countrywide Home Loans when the court Thursday denied Countrywide's motion to dismiss the case.

In a 5-to-0 ruling by the first department of the appellate division of the Supreme Court, all five judges affirmed a ruling by the lower court allowing MBIA to go forward with fraud and contract claims against the originator of home loans. Parent company Countrywide Financial was acquired by Bank of America at the height of the financial crisis in 2008.

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