Holders of Countrywide Financial Corp. mortgage bonds may form a group to challenge the Bank of America Corp. unit's plan to rework home loans to settle fraud complaints, according to a lawyer.

Countrywide entered an agreement with 14 states last month to cut loan amounts and interest rates for almost 400,000 borrowers. The B of A unit owns 12% of the loans, managing the rest for other companies and securities investors, such as pension funds and hedge funds.

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