BofA’s $8.5 Billion Mortgage Bond Pact Approved by Judge
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Bank of America Corp.’s $8.5 billion settlement with mortgage-bond investors, including BlackRock Inc. and Pacific Investment Management Co., was largely approved by a New York state judge.
Bank of New York Mellon Corp., the trustee for more than 500 residential mortgage-securitization trusts, filed a petition in June 2011 seeking approval of the settlement, which aimed to resolve claims that the loans backing the bonds didn’t meet their promised quality. Investors will still be able to pursue loan-modification claims under yesterday’s decision, an obstacle that a bank spokesman said could be addressed.