Housing recovery may have contributed to the recent
Litigants had dropped some objections over the last two years given housing-related improvements in private-label residential mortgage-backed securities performance. Approval of the settlement likely reflected this, analysts at the ratings agency noted in a report Monday.
Bank of America has enough reserves to cover this settlement, but still faces uncertainties related to a potential appeal related to loan modifications. It also has remaining litigation exposure in New York and California related to Federal Housing Finance Agency securitization claims, Fitch noted.
