Bank of America Settlement in Jeopardy?

Here’s some more on what may or may not cause more people to rent rather than stay in their own distressed homes.

Bank of America’s $8.5 billion settlement in 2011 to resolve claims over Countrywide’s mortgage abuses may be in jeopardy. Last week, a group of investors, the Triaxx funds and the Federal Home Loan Banks of Boston, Indianapolis and Chicago, all of which hold certificates of mortgage-backed securities issued by the trusts covered by the settlement, sent a letter to the trustee in the New York case in which the settlement was reached.

The letter was sent to the presiding judge. In that letter, the investors claim that Bank of America may have engaged in self-dealing and other misconduct in connection with modifications to first lien loans held by the trusts where Bank of America or Countrywide held second lien loans on the same mortgaged properties.

via Bank of America Settlement in Jeopardy? | Mortgage Crisis Watch.

See also:
Settlement Deal: 2nd-Mortgage Shenanigans
Don’t Blink, or You’ll Miss Another Bank Bailout

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