03Judge delays payouts in BofA $8.5 bln mortgage bond settlement

 

This is a reuters.com article.

 

A judge on Friday delayed payouts to investors from Bank of America Corp’s $8.5 billion mortgage securities settlement after the trustee overseeing the securities asked for instructions on how to split the proceeds among investors.

Justice Saliann Scarpulla of New York state court in Manhattan signed an order that the money be held in escrow while investors have an opportunity to voice their views of how to calculate the distributions.

In a filing earlier on Friday, Bank of New York Mellon, the trustee, requested court intervention, saying competing interpretations of the methodology was delaying the distribution of billions of dollars.

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