Knights of Columbus Sues Bny Mellon
The Knights of Columbus (KOC), a Catholic fraternal service organization with a $17 billion investment portfolio which is invested in two mortgage backed securities (MBS) trusts where BNY Mellon is the trustee and Countrywide is the master servicer of the underlying loans, filed suit against BNY Mellon for information concerning the actions of Countrywide to assure that its investments are not supporting improper mortgage loan treatment of struggling borrowers. BNY is responsible for administering and tracking the paperwork for the security and Countrywide, now owned by Bank of America, is responsible for the underlying home loans, including mortgage processing and foreclosures. The KOC lawsuit focuses on whether Bank of America followed the letter of the law when foreclosing on struggling borrowers. In particular the lawsuit indicates concern by the KOC that “robo-signing” of mortgage documents resulted in improper paperwork leading to faulty foreclosures.
Interestingly, the lawsuit does not seek monetary relief from BNY Mellon but, rather information about mortgage loan processing.