10-24-2013: In addition to my other blog posts regarding big bank multi-Billion-dollar mortgage settlements, Bank of America is also facing heat from something they never did. They acquired (through highly suggestive US Government suggestion) Countrywide Financial Corp after the real estate bubble crash. Before the acquisition, Countrywide had alot of stated loans (i.e., you state your income and if your credit score was high enough, they made a loan) and made other risky loans including expedited processing of approvals (i.e., High Speed Swim Lane or hussle loans) and subsequent sale of those loans to Fannie Mae and Freddie Mac, of which a good many failed..now Fannie and Freddie are ticked and suing Bank of America for something they never did. I’m not sympathetic, but I wonder if that is fair or not since Countrywide behaved this way, not Bank f America.
3-10-2012: Bank of America agrees to cut down to market value and not just down to 120% LTV in Big Bank Settlement. Source: http://www.courant.com/business/hc-bank-of-america-mortgages-deal-20120309,0,5836235.story
10-20-2011: Possible plan to settle 50 US States Attorney General lawsuit over foreclosure action of many US banks would allow people underwater (owing more than home is valued) and current on monthly payments to refinance to a lower rate for only those mortgages owned by banks (about 20% of mortgages (which means about 80% are tied up in mortgage backed securities). Source: http://www.mortgagenewsdaily.com/10182011_ag_servicer_settlement.asp
9-3-2011: Federal Housing Finance Agency (FHFA) “IS” (depending on Bill Clinton’s definition of IS) suing 17 major US banks over Mortgage Meltdown…Source: http://online.wsj.com/article/SB10001424053111904583204576546940630966016.html?mod=djemalertNEWS
9-2-2011: Big banks are getting sued by Federal Government; over 1 million distressed/forecloed homes coming to a market near you soon; and Bank of America is receiving more attention.
9-2-2011: Federal Reserve asks Bank of America for contingency plans – including bankruptcy? Source: http://www.bizjournals.com/sanjose/news/2011/09/02/fed-asks-bofa-for-contingency-plans.html
7-6-2011: It may not affect just Mega Banks, but the majority of mortgage are used/held by the Mega Banks. About 20% of mortgage portfolios at Mega Banks are delinquent. Source: http://online.wsj.com/article/SB10001424052702303763404576416090501569426.html?mod=googlenews_wsj
6-18-2011: HUD claims Bank of America (BOA) hindered investigations and didn’t provide access to BOA personnel or data to investigators in a “timely manner”. Source: http://agentgenius.com/real-estate-news-events/bank-of-america-stonewalling-mortgage-probe-says-hud/
3-15-2011: Bank of America plans to write down mortgages on applicable loans by US soldiers on active duty. WSJ, 3-11-2011, C1.
3-11-2011: Bank of America is thinking about closing about 6,000 banking locations due from electronic banking growing in popularity. Source: Bank of America may close some locations
3-8-2011: Just to summarize – J.P. Morgan Chase bought Washington Mutual Bank; Bank of America bought Countrywide Home Loans; and Wells Fargo bought Wachovia.
3-7-2011: Wells Fargo is now controlling about 25% of the mortgage loan market and B of A share has fallen to about 20%. (WSJ, 3/5-6/2011) (My personal thoughts – the mortgage market will probably continue to fall due to higher down payment requirements, fewer qualified applicants due to credit issues, and previous bank foreclosures of their real estate.)
3-7-2011: Bank of America is leaving the reverse mortgage market (probably to focus on more profitable loans since we are in a declining value market).(WSJ, 3/5-6, 2011, B15)
1-10-2011: Bank of America is expected to buy back only about $3 Billion of home loans (from Fannie Mae/Freddie Mac) due from their acquisition of Countrywide Mortgage, but some analysts expect private investor lawsuit settlements to range from $8-35 Billion ($6 Billion repurchase requests from private investors and insurers) …Also, Ally Financial (part of GMAC that the Federal Government owns) agreed to pay Fannie Mae $462 million to cover purchase requests related to mortgages…The relative good news is that some estimates see total losses across the mortgage industry could be limited to $33 Billion. (WSJ, 1-4-2011, C10)
12-31-2010: Bank of America (B OF A) settled with (paying $108 million to) the SEC from charges that Countrywide (who B of A acquired) improperly charged mortgage customers; settled with (paying $150 million to) the SEC due from failing to properly disclose information regarding their acquisition of Merrill Lynch; and settled with (paying $137 million to) the SEC related to steering government municipal bond sales to specific bidding agents. (WSJ 12-8-2010, C8)
12-21-2010: Wells Fargo agreed to provide $2.4 billion in loan modifications to settle claims of a California lawsuit – $33 million to reduce or prevent foreclosures and $32 million in restitution of “pick a Pay” (adjustable rate) loans. Agreements between Wells Fargo and other states are in progress. (WSJ, 12-21-2010, C9)
12-16-2010: (WSJ 12-16-2010, C1) – Bank of America (BOA) is fighting allegations from 17 investors that 167 bond deals were improperly serviced and their subsequent requests to “buy back” those mortgages. Total claims of $12.8 Billion in repurchase of mortgages.
11-16-2010: Bank of America has already paid $9 billion
11-6: J.P. Morgan Chase plans to proceed with foreclosure filings. It’s been reported that Chase has been asked to repurchase $2.92 billion of loans in 2010 and $3 billion in 2009 out of a total requested $8-9 billion in each of these two years. (WSJ)…JPM has also said they converted 29% of the temporary loan modifications into permanent modifications (WSJ 11-6/7-2010).
10-27-2010: Bank of America will focus more on retail mortgages directly to customers (22% of market last year) is exiting wholesaling of mortgage loans – might result in loss of 1,000 jobs. May mean Wells Fargo becomes biggest wholesaler and can pick up the slack..maybe. JP Morgan Chase doesn’t plan to purchase loans from mortgage brokers.
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