BofA to pay record $500M to settle claims by investors in Countrywide mortgages

Breaking its own record for a settlement resolving class-action litigation over mortgage-backed securities, Bank of America will pay $500 million to investors who claimed they were misled about the soundness of mortgages originated by Countrywide and packaged into MBS.

The settlement approved today includes $85 million in attorney’s fees and breaks the previous record of $315 million set last year paid by Bank of America to settle a similar suit involving Merrill Lynch. Bank of America acquired Countrywide and Merril Lynch during the financial crisis that followed the housing boom. Source: