Bank of America in Settlement Talks Over Mortgages

WSJ ^ | 12/15/2010 | DAN FITZPATRICK

[FromLori]

Bank of America Corp., after vowing to fight requests that it repurchase certain loans, has begun potential settlement discussions with some of its largest mortgage investors.

The 17-member group now in talks with the nation's largest bank as measured by assets includes the Federal Reserve Bank of New York, government-owned mortgage company Freddie Mac, BlackRock Inc., and Allianz SE's Pacific Investment Management Co., or Pimco.

The bank's approach with this group appears to signal a change in tone for Chief Executive Brian Moynihan, who in November pledged to engage in "day-to-day, hand-to-hand combat" on investor requests to repurchase flawed mortgages made before the U.S. housing collapse.

Bank spokesman James Mahoney said the decision to engage in talks with the investor group isn't inconsistent with Mr. Moynihan's previous approach.

"Our strategy hasn't changed," he said. "For both Bank of America and the investors, resolving these issues quickly is in everybody's interest. Whether resolution comes through a protracted process or it can be expedited, time will tell."

The investors, some of whom are acting on behalf of clients, sent a letter in October alleging that a Bank of America unit didn't properly service 115 bond deals comprised of residential mortgages. It gave the bank 60 days to respond.

The disclosure of the letter sent Bank of America's stock tumbling 4.4% on Oct. 19, as investors grappled with concerns that the bank could be overwhelmed with such investor requests. The group has since expanded and now includes 17 investors and 167 bond deals.

[Fido969]

Screw banks.

Don’t borrow money, and buy guns and gold.

[hondact200]

Bank of America acquired CountryWide Mortgages. Here in the UP of Michigan I drive by the former CountryWide Bank of america Home Mortgage Office Building and guess what it is Out of Business. I love it. I can remmeber when going for a home loan, my credit score was 720, and Countrywide turned me down for a home loan. I went elsewhers and got the home loan, they could not believe I was turned down at 720. I am loving it that Bank Of America is getting its comeupance

[FromLori]

I would like to see Government Sucks get a bit of what is coming to them.

Totally Busted: The Truth About Goldman’s Bailout by the Fed

http://www.economicpolicyjournal.com/2010/12/totally-busted-truth-about-goldmans.html

[freekitty]

Ah, the original Bank of Italy now Bank of America has spoken.

[FromLori]

I cannot stand Jamie Dimon he helped get obama elected gave Acorn money and so did Goldman Sachs they contributed heavily to him.

And yet look who’s really on the hook!

Fed Reveals Bear Stearns Assets Swallowed to Get JPMorgan to Rescue Firm

http://www.bloomberg.com/news/2010-04-01/fed-reveals-bear-stearns-assets-swallowed-to-get-jpmorgan-to-rescue-firm.html

Want To Ruin Your Own Country? Assume Your Banks’ Liabilities

http://gonzalolira.blogspot.com/