By Kyle Chezum Updated on 10/22/2010

In the midst of suspicion over erroneous foreclosures, large banks such as Bank of America may face more serious trouble from investors and the Securities and Exchange Commission.  Some investors argue that banks have misrepresented facts and failed to disclose full information related to loan modifications carried out in order to help prevent additional foreclosures.  These loan modifications have reduced the value of the mortgage-backed securities sold to investors.  The SEC intends to either verify or disprove the claims made by these investors, and further litigation seems likely.

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