NEW YORK - Six federal home loan banks are seeking to join a case in which a judge will decide whether to approve an $8.5 billion settlement by Bank of America Corp. with Bank of New York Mellon Corp. over mortgage-securitization trusts.
The six banks “have not made decisions whether to oppose the settlement,’’ the Federal Home Loan Banks of Boston, Chicago, Indianapolis, Pittsburgh, San Francisco, and Seattle said in court documents. They seek to intervene because “the proposed settlement will not provide them enough information on which to make careful and informed decisions.’’
BNY Mellon, as trustee of the 530 trusts, sought approval of the settlement. The agreement requires Bank of America, its Countrywide Financial unit, or both, to pay $8.5 billion.
The request by the home loan banks came a day after it was revealed that New York Attorney General Eric Schneiderman is seeking client information from more than 20 companies as part of an investigation “into certain matters related to securitization of residential mortgages.’’
Investors have claimed that units of Countrywide failed to honor contracts, saying they needed to repurchase loans that never matched their promised quality.
