BofA's $8.5 Billion Mortgage Bond Settlement Gears Up for Hearing

Bank of America Corp.’s proposed $8.5 billion settlement with mortgage-bond investors is scheduled to be considered for approval by a state court judge in New York at a hearing beginning May 30.

Justice Barbara Kapnick of New York State Supreme Court in Manhattan signed a scheduling order yesterday setting the hearing to review the settlement.

The agreement, which resolves claims over Countrywide Financial mortgage bonds, was filed in court for approval in 2011 and has drawn challenges from some investors. Bank of America acquired Countrywide in 2008.

Under the schedule approved by Kapnick, briefs in support or opposition to the settlement must be filed by May 3 with the final hearing starting May 30.

The case is In the matter of the application of the Bank of New York Mellon, 651786-2011, New York State Supreme Court.