Bank of America, investors discuss controversial $8.5 billion MBS settlement in court

The Wall Street Journal covered the first day of courtroom discussions over Bank of America’s controversial $8.5 billion settlement with investors over mortgage-backed securities that eventually led to steep losses.

The publication has more:

A hearing to approve an $8.5 billion settlement between Bank of America Corp. and investors over soured mortgage-backed securities kicked off Monday with the trustee that negotiated the pact arguing it made a good-faith deal to settle investors’ claims against the bank, although not all the investors agreed.

The judge will decide if the pact between Bank of America, which purchased Countrywide in 2008, and investors was entered into in good faith. By asking for the court’s imprimatur, the trustee hopes to fend off any other future claims.

Most Popular Articles

Is the housing market already rebounding from COVID-19?

In early April, HousingWire Columnist Logan Mohtashami wrote about five indicators that would show when “America is back.” Now, he’s checking in on each data point to see where the U.S. housing market stands.

May 26, 2020 By

Latest Articles

[PULSE] Does the mortgage industry view foreclosure as a last resort?

Even in normal conditions foreclosure is a cumbersome solution to the problem of the defaulting borrower. It can produce vacant and abandoned properties, because as soon as the residents receive notice that the house will be going into foreclosure, they face uncertainty about when they will be ousted, which prompts many to vacate the premises before getting thrown out.

May 28, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please