| NEW YORK
NEW YORK May 3 The Federal Housing Finance
Agency on Friday withdrew its conditional objection to Bank of
America Corp's proposed $8.5 billion settlement with
investors in Countrywide mortgage-backed securities.
Other parties, including American International Group Inc
, remain opposed to the deal.
A court filing withdrawing the objection did not give any
reasons for the FHFA decision and a spokeswoman for the agency
was unavailable for comment.
A hearing is scheduled to begin May 30 in New York state
court on whether the settlement should be approved.
The proposed settlement was reached in June 2011 with 22
institutional investors in 530 trusts issued by Countrywide
Financial. Countrywide was acquired by Bank of America in 2008.
The FHFA oversees mortgage financiers Fannie Mae and Freddie
Mac, which back about half of existing U.S. home loans. The
enterprises were seized by the government in 2008 as mortgage
Justice Barbara Kapnick of New York state court in Manhattan
set a May 3 deadline for opponents of the settlement to file
The case is In re: Bank of New York Mellon, New York State
Supreme Court, New York County No. 651786/2011.