A New York appeals court upholds a previous decision regarding MBS put-back lawsuits.
In short, once the the $8.5 billion settlement between Bank of America and Bank of New York Mellon (the trustee) is approved a big portion of the mortgage problems at Countrywide will have been dealt with.
Disclosure: Long BAC and BAC.WS.A
Postscript - I've been reading some of the legal documents this morning. I particularly liked this footnote in the INSTITUTIONAL INVESTORS’ STATEMENT IN SUPPORT OF SETTLEMENT AND CONSOLIDATED RESPONSE TO SETTLEMENT OBJECTIONS.
17 Assuming there are 260 court days per year (52 weeks x 5 days a week) and eight hours of court time in each day, there are only 2,080 hours per year of court time available. There are at least 770,000 loans held as collateral by these Trusts. The Institutional Investors concluded that at least 30% of the loans were eligible for repurchase; the Trustee’s expert used a much lower, 14.4% defect rate. Even if one used the Trustee’s calculation, it would mean that 110,880 loans would be the likely subject of repurchase litigation. At a mere thirty minutes per loan, it would take a court—working full time on nothing but repurchase claims—26.6 years to process and decide all of these potential repurchase claims, without considering time for appeal. Even if the cases were spread among a number of courts, and shorter processing and longer trial days were assumed (neither of which is likely realistic), the litigation of these repurchase claims could easily drag on for more than a decade, if not longer.