Is there no end to the troubles facing the Countrywide and, in turn, its parent company Bank of America.  On Thursday, MBIA claimed it has new evidence of “widespread mortgage-origination fraud” at Countrywide, hoping to bolster its $1.4 billion lawsuit, in which MBIA accuses Countrywide of fraudulently inducing it to insure risky mortgage-backed securities. MBIA claims Countrywide misrepresented the quality of underwriting for about 368,000 loans backing 15 financings that MBIA insured in 2005-2006-2007.  MBIA said it would not have provided the insurance had it known how the loans were underwritten. In MBIA's latest communication with NYS Supreme Court Justice Eileen Bransten, the insurer wrote in a letter dated 2/15/12 that it seeks to force Countrywide to turn over a variety of documents - “many” documents that “relate to recently uncovered evidence of widespread mortgage-origination fraud at Countrywide.  Countrywide appears determined to withhold this evidence from MBIA despite its clear relevance to several of MBIA’s claims.” The request came after Countrywide produced what MBIA called an “incomplete” set of loan records backing MBIA-insured securities from a Countrywide fraud-tracking database, known as FACTS, that was “not previously known to exist” to the insurer. Countrywide respond through its lawyers, who said their client was “surprised” at MBIA’s request and had “promptly and voluntarily produced all records contained in the FACTS database” used by its fraud risk managers concerning the loans.  They added on Thursday that MBIA’s request was part of the insurer’s strategy to “pre-try” the case “based on nothing more than hyperbolic rhetoric and falsehoods.” Separately, Bank of America on Feb. 15 asked Judge Bransten ... to block MBIA’s request to depose CEO Brian Moynihan.  “A [CEO] of a major corporation may only be deposed when he has unique information that is not available through other means.  The discovery process remains fully available to MBIA, including through the numerous current and former executives that MBIA will be deposing.” MBIA’s prospects in the case brightened last month when Judge Bransten ruled that to establish fraud, MBIA need only show Countrywide misled it about the $20 billion of securities it insured, not that such misleading caused its losses. The case is: MBIA Insurance Corp v. Countrywide Home Loans Inc et al, New York State Supreme Court, New York County, No. 602825/2008. For further details, go to:   [CNBC, 2/17/12].