CHARLOTTE, N.C. — Bank of America, responding to the attorney for a bondholder group that’s pushing the bank to repurchase soured home loans, demanded proof the lawyer is authorized to mount an attack on behalf of investors including units of BlackRock and MetLife.
Wachtell, Lipton, Rosen & Katz’s Theodore N. Mirvis is among lawyers for Bank of America who said in a letter Thursday to Houston-based Gibbs & Bruns’s Kathy Patrick that they want the names of individuals who approved signatures on a letter Patrick sent the lender last month. They also want to know whether the board of directors for the bondholders Patrick said she represents approved the signing of her correspondence.
“Troubling aspects of your letter strongly suggest that it was written for an improper purpose, or in furtherance of an ulterior agenda,” Bank of America’s attorneys wrote, saying they see no need to take action in response to Patrick’s letter.
Investors are stepping up efforts to recoup losses on mortgage bonds, which plummeted in value amid the worst slump in home prices since the 1930s. Bank of America chief executive Brian Moynihan said Oct. 19 the lender will “defend our shareholders” by disputing any unjustified demands for mortgage buybacks.
BofA’s lawyers said they couldn’t determine “whether any investigation of your allegations is warranted” unless Patrick proves her clients own as much of the bonds created by the bank’s Countrywide Financial unit as they claim.
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Home sales index slips
WASHINGTON — A gauge of pending sales of homes fell 1.8 percent in September, signaling an “uneven recovery entering 2011,” the National Association of Realtors reported Friday.
The association’s index of pending home sales fell to 80.9 from a slightly upwardly revised 82.4 in August. Pending sales reflect contracts signed between homebuyers and sellers, and closing a sale usually takes a few months.
During September, pending home sales fell in three of four regions but rose 3.5 percent in the West. Market Watch
