Bank of America mortgage deal goes before judge

The proposed $8.5 billion settlement centers on home loans sold before the financial crisis

A proposed $8.5 billion settlement between Bank of America Corp. and investors angry about faulty mortgage securities will go before a judge on Monday.

The June 2011 deal was intended to settle claims brought by multiple institutional investors who held bonds issued by Countrywide Financial Corp., which Bank of America acquired in 2008. Twenty-two of the investors—among them BlackRock Inc., Allianz SE’s Pacific Investment Management Co. and MetLife Inc.—signed on to the deal.

Alanna Byrne

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