MBIA Insurance is suing Countrywide Financial, alleging that the mortgage lender fraudulently induced MBIA to guarantee billions of dollars of Countrywide mortgage bonds that have cost the embattled bond insurer more than $459m. The suit, filed in New York state’s supreme court, raises fresh questions over the extent of Bank of America’s exposure to potential legal and regulatory liabilities incurred by Countrywide, which it acquired this year. The California mortgage lender is already facing litigation filed by borrowers and states’ attorneys-general that claim Countrywide engaged in unfair and deceptive lending practices. MBIA said in its complaint that Countrywide had “falsely represented” to both MBIA and investors that mortgage loans packaged into the guaranteed bonds had been originated in strict compliance with its underwriting standards.