BofA, mortgage-backed securities, mortgage, MBS, foreclosure, Bank of America
by WolfEyes Photography
Various lawsuits have been lodged by investors against Bank of America (BofA) over mortgage-backed securities or MBS and the suits could involve at least billion worth of investments. Investors are alleging that BofA have sold unwarranted MBS home loans.
Earlier, BofA had estimated more than 5 billion worth of securities in its regulatory filing but retracted and cut the figures following a California court ruling.
The suits are still part of the investors’ efforts to compel US banks to repurchase billions of mortgage-backed securities that banks have sold to them.
The number of MBS at issue in a possible class suit had been limited by a California court which ruled that the number should be lowered from 2 billion to billion.
Courts are being asked by investors to certify their suits against the alleged misrepresentations and faulty warranties that banks have made in its MBS sales transactions.
Bank of America said that aside from repurchase demands, investors are also asking the courts to grant them unspecific compensatory damages. But it also said that the amount involved could be lower since there are still a number of factors that need to be considered such as mortgage repayments, collaterals and partial payments already made by the borrowers.
The company also said that it has already put into place new standards that would dispel any more doubt about the integrity of its foreclosure process. But the same standards could also increase foreclosure costs. It can be recalled that BofA had implemented a foreclosure freeze in all 50 states after the banks foreclosure procedures have been put under investigation by state and federal regulators. But the bank has already since resumed foreclosure documents in 23 states while maintaining the moratorium on the rest.
The bank also fears that new foreclosure system could result in higher fees, including legal and servicing dues. It also expressed its concerns that the probe could put completed foreclosures under tighter scrutiny and impose additional regulations on them.
From CNBC Squawk Box Feb. 23 Copyright MSNBC 2010 Also Banks Apply Pressure to keep fees rolling in: www.msnbc.msn.com Fed Federal Reserve to stop purchasing mortgage backed securities
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@PhotonDrive Thanks much for commenting.
The FED owns 1.3 trillion in mortgage CDO’s?!?! Not just persion funds / foreign banks / soveirgn, including oil sheik kingdoms, etc. HA, HA. HA. HA! They must just LOVE this freeze – and the case that NO ONE HAS THE ORIGINAL OWNERSHIP PAPER????
@KhmerD0g, I love it love it love it, let it go bust and let those assholes suffer, ahahahahahahahahahahahaha, I’m celebrating big time.
Just more whistling past the graveyard….
funny:)
agree
mortgage is screwed to the bone.
sub-prime real estate was busted. now we are in prime real estate collapsing. the up coming commercial real estate will burst then come option ARM and alt-A home mortgage.
the entire mortgage industry is collapsing. those in home and commercial building industry will go bust.
This is the reason G-d have him the last name Lies-Man.
Good job chuckles.
brain dead ..my bad
confidence down 10 % plus ..
themodernmystic’s vid this morning was very good… lot of global indicators.
I think so… it’s a crying shame.
very interesting……..that was the plan all along, i think.
took 3 hrs to read
market ticker ..mish.. zero hedge this morning
lots of valid ideas and info .today..
now this worthless ass hat spewing words
that make little or no sense….just worthless
no wonder confidence charts down 5% this month..
dominos people ..one falls ..all fall
we are beyond the event horizon ..
strap in .. put on your helmet
enjoy the ride ..
it’s all road kill ….no coco puffs
take care…
thanks for commenting:)
“they have promissed any unloading will be gradual” … Somehow nice
this is typical CNBC dribble. Complete nonsense. But all of us know that… it is the millions who believe anything on the Tele..
Complete nonsense – Guess we have something else to short to match our shorting the job market
thanks dell
@fal2grace yes see the link on my channel about how much stimulus went overseas please
Unrelated but of interest: Just read that GM is adding 1,200 new jobs… in China.
@justaoldslave who wants to live in any of those places… lol. The rent is generally many times higher in places like Japan, Paris, UK, even around Canadian cities where if you do price/sq/ft. American prices are low low. We don’t compete with third world real estate… although the prez is right, unless we get healthcare, we won’t compete with 1st world countries as they ALL offer it as part of citizenship. However, I do agree with you on taxes.
@331zizzy it always boggles my mind that it’s that easy to break it down. people need to realize politics and economics really arent that complicated if you know the string pullers
credit default swaps have been behind the magic tricks. when these are truly valued on the open market is when the shit hits the fan. it’s like pass the parcel. when the banks stop and open their parcel and find it’s full of nothing is when some more companies go under. but like ron says, this is when houses will drop in value like they should.
drag snabit…….i see that it is playing for everyone else, but does not like me today…..i will try to come back later………
patriot radio news hour has been predicting the future quite accurately for the past 2 years i have listened to it.. i see no reason to believe anything that is contrary to what they are saying now. things are going to get worse.
I think that’s their objective. Out of confusion and chaos, they can create their order. Can’t work forever, though.