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BofA Countrywide agrees for $500m mortgage settlement with investors

Bank of America (BofA) has agreed to a $500m settlement agreement with investors over accusations that its Countrywide unit misled them to purchase risky mortgage debt.

Pending receipt of court approval, the current settlement is in addition to an $8.5bn settlement being reviewed in a New York state court over Countrywide securities.

The settlement will resolve claims on nearly 80% of the unpaid principal balance of Countrywide-issued residential mortgage-backed securities, and 70% of similar claims against the bank.

A lawyer for other plaintiffs Steven Toll said that the settlement papers are expected to be made public by the end of May, as reported by Reuters.

The Countrywide case has been filed in the US District Court, Central District of California.