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FHFA enters into BofA's $8.5 billion mortgage servicing settlement

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Bank of America's (BAC) $8.5 billion mortgage-backed securities settlement is receiving more push back – this time from the Federal Housing Finance Agency. The conservator of Fannie Mae and Freddie Mac released a statement Wednesday, saying it had filed an objection in court, asking for more information about BofA's proposed settlement with a consortium of 22 investors. "This pleading was filed to obtain any additional pertinent information developed in the matter," the FHFA said in a statement. "The conservator is aware of no basis upon which it would raise a substantive objection to the proposed settlement at this time." The FHFA said it considers the proposed settlement a positive move in that a "number of significant market participants support the proposed settlement." Still, the agency said it has a duty to preserve and conserve GSE assets. FHFA added that it's requesting additional information to conduct its own due diligence and to "reserve its capability to voice a substantive objection in the unlikely event that necessity should arise." The Bank of America settlement is receiving heat across the board this week. The Federal Deposit Insurance Corp. also filed a motion challenging the bank's proposed settlement with The Bank of New York Mellon, which serves as trustee to the transaction. The FDIC objects to the settlement because the regulator "does not have enough information" to evaluate the proposal. An investor group filed suit earlier this year, suggesting the settlement could undermine investor compensation and prevent harmed parties from raising other causes of action. Write to: Kerri Panchuk.

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