Bank of America Corp. (BAC:US) asked a judge to reject a demand for loan files in litigation over the bank’s proposed $8.5 billion mortgage-bond settlement, saying it threatens years of delay.
The files are irrelevant to the case and producing them for investors would “dramatically transform” the proceeding, Bank of America said in papers filed today in New York State Supreme Court in Manhattan.
“Loan-file review will answer no questions,” the Charlotte, North Carolina-based lender said. “It will lead only to interminable delay and unnecessary litigation, loan-by-loan- by-loan. It will bog down this proceeding for no good reason.”
The settlement with Countrywide Financial mortgage-bond investors is before a state judge for approval, and some investors have said they need information related to the agreement and negotiations leading up to it.
American International Group Inc. (AIG:US) and Walnut Place are “leading the charge” on getting the loan files, Bank of America said. A sample of loan files that was requested would total more than 200 million pages and “require untold years to evaluate,” the bank said.
Michael Rollin, an attorney for AIG, said in an e-mail that Bank of America’s position “is without merit and we are looking forward to addressing the issue with the court.”
An attorney for Walnut Place didn’t respond to an e-mail seeking comment.
The case is In the matter of the application of the Bank of New York Mellon, 651786-2011, New York State Supreme Court (Manhattan).
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