Bank of America in its record-setting regulatory settlement of misrepresentations related to securitized loans acknowledges it and its predecessors bent underwriting rules to the point where there virtually weren't any.

A 30-page statement of facts from the U.S. Department of Justice released as part of the settlement shows how Countrywide and Merrill Lynch, both of which B of A acquired — as well as B of A itself — removed an increasing number of underwriting requirements over time without clear disclosure to investors.

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