The trustee said it expects to receive the $8.5 billion from Bank of America on Feb. 10, but sought an order on the distribution formula before routing the cash to the 530 residential mortgage-backed securities trusts involved. Investors from Bank of America have had their payouts delayed in the $ 8.5bn mortgage securities settlement by Judge Scarpulla in New York after the trustee , Bank of New York Mellon , which is overseeing the securities , asked for instructions on how to distribute the proceeds among the investors . The question is whether each trust should first count the proceeds it will receive from Bank of America as a reduction in the trust 's liabilities to shareholders or as an increase in the trusts assets ; in some trusts , the order could end up with investors in less - secure investor classes getting payouts that otherwise would go to more senior ones . The settlement revolves around claims involving $ 174bn of mortgage securities issued by the former Countrywide Financial Corp which was purchased by Bank of America in 2008 .
Investors from Bank of America have had their payouts delayed in the $ 8.5bn mortgage securities settlement by Judge Scarpulla in New York after the trustee , Bank of New York Mellon , which is overseeing the securities , asked for instructions on how to distribute the proceeds among the investors . The question is whether each trust should first count the proceeds it will receive from Bank of America as a reduction in the trust 's liabilities to shareholders or as an increase in the trusts assets ; in some trusts , the order could end up with investors in less - secure investor classes getting payouts that otherwise would go to more senior ones . The settlement revolves around claims involving $ 174bn of mortgage securities issued by the former Countrywide Financial Corp which was purchased by Bank of America in 2008 .