Citigroup Global Markets analysts said in a report today that, while the Countrywide RMBS settlement may still be contested by other parties,  the withdrawal of Walnut's Place entities of their separate rep and warranty lawsuit means the agreement's terms are will likely be finalized soon.

Analysts said that without the objection from these entities, the settlement should be approved more quickly. "The settlement amount is now unlikely to increase," they said in the report. "We expect final payments to bondholders to be made in nine to 12 months."

On July 23 ASR reported that the Walnut Place entities that spearheaded the opposition to the $8.5 billion Countrywide RMBS settlement announced their withdrawal as intervenors in the court proceedings.

The Walnut Place entities, while not the only parties involved as interveners in the settlement, were listed as the principal players in opposing the case and were responsible for moving it to federal court in August 2011, explained Citi analysts.

Meanwhile, AIG has stated that they  plan to continue their opposition to the settlement. The New York and Delaware AGs also remain involved in the proceedings.

 

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