Bank of America’s proposed mortgage-debt settlement criticized

Bank of America’s proposed mortgage-debt settlement criticized

Bank of America’s effort to move past the soured mortgages that Countrywide Financial packaged into securities may hinge on whether a judge agrees that the world’s largest bond buyers struck a generous-enough deal for all investors.

The lender, the largest U.S. bank by assets, is seeking to pay $8.5 billion, or 2 percent, to avoid repurchasing faulty loans placed into $424 billion of bonds, an offer supported by a group of 22 bondholders including BlackRock and Pacific Investment Management in an agreement announced Wednesday.

Read The Seattle Times News Story…