Countrywide Attorney: MBS Fund Lacks Standing To Sue Lender

Reuters reports:

• A fund representing bond investors seeking to force Bank of America-owned Countrywide Financial to repurchase thousands of mortgages failed to satisfy requirements to sue under contracts governing the securities, according to Countrywide attorneys.

• John Beisner, a laywer at O'Melveny & Myers LLP, in a Dec. 8 letter asserted Greenwich Financial Services "lacks standing to sue" under contracts that limit lawsuits unless conditions are met, including that 25 percent of bondholders request such litigation.

For more, see Bond investor group "lacks standing" to sue: Countrywide-counsel.

Go here for More On Hedge Fund Suit Against Countrywide Over $8.4B Bank Of America Loan Modification Settlement.