FDIC files objection to Bank of America mortgage settlement

Claims $500 million deal benefits a small subset of the class represented

While Bank of America hoped it could shed the mortgage securities woes it had picked up with its acquisition of Countrywide Financial in 2008, the deal it struck to mitigate problems and reimburse investors has received new scrutiny.

The deal, a $500 million settlement it struck in April, was designed to take care of approximately 80 percent of the mortgage securities that were back by defective loans. But the figure of $500 million is said to be too small in regards to the $450.7 billion original face values of the mortgages in question.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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