(Source: By David McLaughlin and Jody Shenn) – Investors in Countrywide Financial Corp. mortgage bonds may be owed three times or more of what they’re being offered in an $8.5 billion settlement with Bank of America Corp. (BAC), a group of Federal Home Loan Banks said.The home loan banks, which invested more than $8.8 billion in the mortgage-backed securities, are trying to get access to more information about the deal by joining the case and said a reasonable settlement could range from $22 billion to $27.5 billion or more.
Expert reports used as legal support for the settlement “raise more questions than they answer,” the home loan banks said in a court filing today in New York State Supreme Court, where a judge will consider approving the settlement later this year.
Source: By David McLaughlin and Jody Shenn
Jul 21, 2011 5:02 PM PT
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