Homeowners, Goldman Sachs question BofA's $8.5 billion mortgage settlement
Court filings are piling up against Bank of America and The Bank of New York Mellon as more plaintiffs – including a group of homeowners – file motions in court to block the banks' $8.5 billion residential mortgage-backed securities settlement. A group of four homeowners filed a complaint in a New York court, saying their mortgages are part of the 530 residential mortgage-securitization trusts that Bank of New York Mellon oversees. As trustee, The Bank of New York Mellon entered into the controversial $8.5 billion settlement agreement with BofA on behalf of the trust. The homeowners allege in their complaint that the two banks – in their roles as trustee and seller of the underlying toxic loans– failed to properly service the mortgages. The homeowners accuse The Bank Of New York Mellon, Countrywide, and its owner Bank of America, of contract breach, negligence, gross negligence and intentional tort. Investment bank Goldman Sachs (GS) also is challenging the $8.5 billion settlement between BofA and The Bank of New York Mellon. The investment bank filed a notice of objection in court, saying "it does not have enough information to determine that all investors who are similarly situated will be treated equally under the terms of the settlement identified in the order." Goldman said it would not object to a settlement that treats all investors equally. Write to: Kerri Panchuk.