After months of negotiations, Bank of America settled not one, but two legal disputes on Monday. While they will certainly prove costly to the nation's second largest bank, analysts hope that this puts BofA and the housing market one step closer to healthier future.
In the first deal, BofA, along with nine other lenders including Wells Fargo, JPMorgan and Citibank, agreed to an $8.5 billion payout to cancel claims against the banks for foreclosure fraud and mismanagement. Bank of America's portion Read more [...]
Mortgage rates have dropped to new record lows, and many homeowners have taken advantage of this to lower their monthly payments. It used to be you had to have the right amount of equity in your home to qualify for a mortgage refinance. Roughly 28% percent of American homeowners have "underwater mortgages", which means that they owe more than their house is worth, and previously these homeowners would not be able to refinance because of a lack of equity.
The Home Affordable Refinance Program offered Read more [...]
Debbie Dragon on September 6th 2011 in Mortgage News
The big five mortgage companies in the country who had all hoped to escape the foreclosure fraud fiasco quickly and without having to open their pocketbooks to deeply could all be facing a bill in the tune of $20 billion dollars or even more. Bank of America, JP Morgan, CitiGroup, Ally Financial and Wells Fargo had all hoped for a $5 billion dollar settlement, but it doesn't look like that is what they are going to get.
The five banks have been under investigation since last fall after they were Read more [...]
Wells Fargo recently announced that they were going to be cutting out 1900 positions in their refinance department. Jobs to be eliminated include loan processors and other staff members that assisted with home loans. Wells Fargo is the largest US home lender and during the refinancing boom they went on a hiring spree in order to be able to keep up with consumer demand. Over the last several months as a result of the refinancing demand greatly diminishing, Wells Fargo has been forced to give these Read more [...]
It appears that the troubles for Bank of America are nowhere near over as yet another law suit has been filed against them. Massive fraud is being sited on accounts that Bank of America acquired from Countrywide in 2008. This time it is insurance companies filing suit, claiming fraud on the mortgage back securities that they purchased from Country Wide between 2005 and 2008.
New York Life Insurance Company along with about a dozen others filed complaint in the New York Supreme Court this week. Read more [...]
This week Allstate has filed suit against Bank of America over mortgages the bank obtained when it bought out Countrywide Mortgage in 2008. Allstate is asking for a total of $700 million in damages. The reason? Allstate claims Countrywide sold them toxic residential mortgage-backed securities and they want to be compensated.
In their complaint the Illinois-based company Allstate stated that the mortgage-backed securities they purchased between March 2005 and June 2007 were grossly overrated and Read more [...]
Debbie Dragon on December 28th 2010 in Mortgage News
Bank of America this week restarted foreclosure proceedings. The bank amongst others like JP Morgan Chase and Citi Group, voluntarily stopped foreclosure proceeding back in October, after it was questioned whether or not unjust handling of foreclosures proceedings were taking place.
Bank of America gave attorneys the go ahead to proceed in foreclosing on 16,000 homes this month. According to the company about 1/3 of these are vacant or non-owner occupied and they will start with those homes first. Read more [...]
Just over three years ago, the housing market started to come crumbling down. Ever since, lenders have had to stand on very shaky ground, fending off accusations of funding bad mortgages. It seems however, that lenders may have not seen anything yet. As the housing market continues to tumble, investors who purchased bonds that were backed by piling up bad mortgages, are starting to feel their losses. Investors are looking for answers and a refund.
The issue at hand is there are billions of dollars Read more [...]
Countrywide, once the largest mortgage lender in the US with a portfolio more than $1.4 trillion has been ordered to pay one of the highest settlements in the industry. Bank of America, who acquired Countrywide in 2008 will pay out to past Countrywide loan holders $108 million, to settle excessive charges and fees that Countrywide sacked on undeserving homeowners. According to the Federal Trade Commission more than 200,000 homeowners will receive settlements.
Jon Leibowitz, chairman of the Federal Read more [...]