BofA Announces $8.5 Billion Settlement of Countrywide RMBS Claims

Bank of America announced it reached agreement to settle nearly all of the claims related to Countrywide-issued first-lien residential mortgage-backed securities, representing 530 trusts with an original principal of $424 billion.  The agreement was entered into with The Bank of New York (Mellon), the trustee for the RMBS trusts covered by the settlement and is supported by a group of institutional investors.  BofA will pay $8.5 billion and will provide an additional $5.5 billion for representations and warranties exposure.