Judge Throws Out Case Against Countrywide

A New York judge threw out a case against Countrywide Financial by investors who wanted the company to buy back mortgages that it had reduced payments for.

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Investors claimed it is unfair for them to have to absorb the cost of modified loans, and that Countrywide was required under contract to buy back any mortgages that it modified.

But the judge, Supreme Court Justice Barbara R. Kapnick, said that ""Greenwich Financial Services, LLC"":http://www.greenwichfin.com/ and ""QED, LLC"":http://www.qedgroupllc.com/ did not comply with a procedural rule that stated they must have the backing of at least 25 percent of investors in their funds before they filed a lawsuit.

In 2008, ""Bank of America"":https://www.bankofamerica.com/ (who owns Countrywide) agreed to an $8.4 billion settlement with attorneys general from several states regarding predatory lending charges.

William Frey, CEO of Greenwich Financial, said the issues had not been solved by the ruling and that the company was deciding whether to appeal the decision or to file a new suit.

Bank of America said it was pleased with the ruling.