Holders of Countrywide Financial Corp. mortgage bonds may form a group to challenge the Bank of America Corp. unit's plan to rework home loans to settle fraud complaints, according to a lawyer.

Countrywide entered an agreement with 14 states last month to cut loan amounts and interest rates for almost 400,000 borrowers. The B of A unit owns 12% of the loans, managing the rest for other companies and securities investors, such as pension funds and hedge funds.

Bruce Boisture, a managing partner at the New York law firm Grais & Ellsworth LLP, said in an interview Wednesday that it wants to coordinate opposition to investors bearing the settlement's costs.

About 25 companies (which he would not name) have sought information about the firm's efforts, he said, though they might not all pursue legal action.

"The bondholders have no reason to object to a loan modification program. The question is who's going to pay for it," Mr. Boisture said.

Dan Frahm, a spokesman for B of A, which acquired Countrywide in July, said, "We're confident we've built a program that benefits both consumers and the investors."

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