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BofA $8.5 BLN settlement still subject to query from Eric Schneiderman | Legal insight

The New York Attorney General, emboldened by his $25 bln settlement with BofA and Ally Financial among others in 49 states that was validated by courts, continued questioning the pennies for mortgaged home owners in BofA’s first $8.5 bln settlement with Bank of New York Mellon.

The Bank of New York Mellon

The Bank of New York Mellon (Photo credit: Wikipedia)

Schneiderman earlier signed a smaller $4 mln settlement with the law firm Baum firm that represented banks in over 100,000 foreclosure proceedings with a boxed process run by Lawyers Steven Baum and his associate Brian Kurniega in his own subsidiary Pillar processing which did not recruit any other lawyers. The two lawyers paid $4 mln in fines and were barred from representing Lenders or Servicers for the next two years

There the NYAG won on the assertion that the law firm’s verification of the Lender/Servicer as the Owner of the note and mortgage without any documentary evidence was arbitrary as no docs were maintained by banks in frequently Securitised mortgages where tangible ownership wasd not traceable or lay with the owner of the ABS due to legal collateral requirements wihth Servicers and Lenders relying on legal processes run by Baum and other lawyers to enforce the foreclosures without ownership being questioned.

Schneiderman has already won a reference in Federal court allowing the NYAG to intervene and participate in the court proceedings for the validation of the BNY Mellonn agreement with BofA as trustee and custodian of Countrywide Mortgage bonds owned by investors . Now the matter has been sent back to State Court and the NYAG has approached the  state court for a similar reference. It earlier stopped pursuing its plans for contesting BNY Mellon’s position as Trustee for the investors.

The MAnhattan Court hearing the BNY Mellon _ BofA case where Schneiderman sent the letter is run by Barbara Kapnick who had earlier approved the original agreement in August 2011

 

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