Bank of America’s Mortgage Headaches Won’t End

The Wall Street Journal ^ | 1/25/2011 | Shira Ovide

[Chunga85]

After more than a week of largely upbeat financial results from banks and brokerages, the markets got solid reminders that the fallout from the home-lending crisis isn’t over. Not by a long shot.

Today, CNBC is reporting that Bank of America has stopped issuing initial foreclosure notices to home owners in states that don’t require a judge to sign off on foreclosures.

Bloomberg News also is reporting about a coalition of private investors, including TIAA-CREF and New York Life Insurance, who are accusing BofA’s Countrywide lending unit of “massive fraud” in selling mortgage-related securities.

Analyst estimates of banks’ potential losses from such litigation has been all over the map. Today, Morgan Stanley’s research shop said it was accelerating its estimate of $8.6 billion in potential losses for 2011 related to private investors trying to force Bank of America to buy back soured mortgage securities.

Last week, Bank of America posted a fourth-quarter loss of $1.2 billion, largely from writing down the value of Countrywide. Bank of America also took a $4.1 billion provision to cover buybacks of mortgages from government-related entities. Bank of America executives also said the bank’s losses from private investors mortgage repurchase claims could be as high as $10 billion, in the worst case.

[Chunga85]

Click through for other ethical banking links....

[Chunga85]

Who knows? Maybe Chinese banks in America would actually be better PING.

[driftdiver]

So they get to write all this off, reducing their corporate income tax.

[Kartographer]

Chunga85 you know it’s the “DEAD BEATS” that caused this! Can’t we just line them up and shoot them?

[null and void]

*shrug* I’m pretty sure that any Chinese banker who engaged in even a fraction of the shenanigans ours did would be shot (and the family billed for the bullet).

[RobRoy]

There is no way this is not gonna leave a mark.

[Kartographer]

“*shrug* I’m pretty sure that any Chinese banker who engaged in even a fraction of the shenanigans ours did would be shot (and the family billed for the bullet).”

Where as our ‘Banksters’ retire leave with a big bonus checks, stock and get a position with the President so they can soak the taxpayers some more.

[Wolfie]

Gee, that’s a real shame. I feel so bad for BofA.

[Chunga85]

I know this John Stewart fella is a "left-wing demon" but I laugh every time I watch this video.

Mortgage Bankers Association Strategic Default

[Frantzie]

Smaller local and regional banks are not as evil as the big banks. There are some Canadian banks in the US too.

[CaptainKip]

Terrific article AND comments!

http://market-ticker.org/akcs-www?post=178151

[FromLori]

“Click through for other ethical banking links....”

Like these?

JP Morgan Sold Investors MBS Covered By “SACK OF SHIT” Loans... Then Shorted All Those With Exposure: A Goldman-AIG Redux

http://www.zerohedge.com/article/jp-morgan-sold-investors-mbs-covered-sack-shit-loans-goldman-aig-redux

And Now, For The Real Sh$%show....

http://market-ticker.org/akcs-www?post=178151

Yet Another Attempt To Bury Fraud

http://market-ticker.org/akcs-www?post=177821

Here It Comes..... (JPM / Bear Stearns)

http://market-ticker.org/akcs-www?post=178228

E-mails Suggest Bear Stearns Cheated Clients Out of Billions

http://www.theatlantic.com/business/archive/2011/01/e-mails-suggest-bear-stearns-cheated-clients-out-of-billions/70128/

BTW you have to remember!

Barack’s Wall Street Problem is Now America’s

http://www.noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/

JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats

http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html

President Obama’s Favorite Banker

http://www.economicpolicyjournal.com/2009/07/president-obamas-favorite-banker.html

I wouldn’t expect prosecutions unless Issa gets serious you can just continue bailing them out with your tax dollars.

Unlimited credit for GSEs seen as backdoor bailout

http://www.reuters.com/article/idUSTRE6044YU20100105

Is Fannie bailing out the banks?

http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/

Mortgage Giants Leave Legal Bills to the Taxpayers

http://www.nytimes.com/2011/01/24/business/24fees.html?_r=3&pagewanted=2&hp

[Chunga85]

That really begs the question....

If the investors of these fast and loose securities (who are pros and signed on a dotted line too) were sold a bill of goods doesn't that mean the deadbeats were also sold a bill of goods?

The innovative financial "products" the banks aggressively marketed and churned to *both* parties are the financial equivalent of the exploding Ford Pinto.

[TruthConquers]

Bank of America stops issuing notices of default in non-judicial states.

http://www.zerohedge.com/article/bank-america-stops-issuing-notices-default-non-judicial-states

[tutstar]

bump

[tutstar]

bump

[Larry Lucido]

Yay! Free houses!

But only for deadbea....er, excuse me. Only for those who innocently didn’t forsee that they couldn’t make a $5000.00 monthly mortgage payment on a $30,000.00 annual salary.

Those who made their mortgage payments get nothing. But skip a few payments, and free house!

[BelegStrongbow]

I’m thinking Joss Whedon is a prophet these days.

[Chunga85]

Bank of America mortgage putbacks could cost $10B with lawyers ‘smelling blood’

$nip>

Analysts scrambled after Bank of America said Friday that mortgage putbacks could cost the bank $7 billion to $10 billion, or zero, as it works with private investors who are eager to unload onto the bank their securities backed by poorly underwritten mortgages.

$nip>

Awesome job by the "analysts" narrowing down the number.

Could be $10B..or..$7B..or..$0. I'm guessing they're all low.

[NeoCaveman]

What a tangled web we (BofA) weave
When first we practice to deceive.