Homeowners Seek to Block Bank of America $8.5 Billion Settlement
Homeowners Seek to Block Bank of America Settlement
The legal onslaught continues for Bank of America.
On Tuesday, several homeowners filed suit in the Federal District Court in Manhattan seeking to block a proposed $8.5 billion settlement between Bank of America and major mortgage investors including BlackRock, Pimco and the Federal Reserve Bank of New York. The suit claims that the deal fails to address widespread servicing problems and would actually speed up foreclosures.
It’s the latest opposition to the $8.5 billion settlement, which was hammered out in June by Bank of America, 22 large investors in soured mortgage-backed securities and Bank of New York Mellon, the trustee for those securities. Smaller investors have already filed legal actions opposing the deal, as has the New York state attorney general, Eric T. Schneiderman.
“There is a growing realization that this settlement needs more scrutiny,” said Keith Fleischman, the lawyer for the four homeowners in the suit. “It needs to address the housing crisis itself.”
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Complaint to come once I get it…