Posted on 07/07/2011 10:30:31 AM PDT by Ernest_at_the_Beach
NEW YORK—Bank of America Corp.'s plan to resolve investor complaints about how it treats troubled homeowners and foreclosed properties is the most significant move yet to reconcile the conflicting interests that have stymied efforts to fix delinquent home loans, said a BlackRock Inc. money manager.
In addition to a proposed deal to pay $8.5 billion under an agreement with 22 investors, including BlackRock, Bank of America last week agreed to send some of its highest-risk mortgages to so-called special servicers—experts who specialize in assisting troubled borrowers.
The new approach adjusts financial incentives to encourage special servicers to find out how ...
(Excerpt) Read more at online.wsj.com ...
In other words from Blackrock, I got mine.
BofA is scared beyond belief the mortgage insurers are going to win their claims to have the fraudulent mortgages recinded back to them. In other words, they are trying to buy their way out of what could sink them by having the insurers make the lenders whole which will easily bankrupt the insurers like MBIA. So, rather than being out 100 cents on the dollar, they hope they can get that down to something much less.
“Dead Beats” fault!
It is ultimately the dead beats fault. Unfortunately, in our system of restributive justice, that is not how these things are decided now.
Thank you I needed a good laugh! ;-)
Do what, I do believe you have that backward. If boa sends the mortgage back to the originator then bank america will be made whole and the originator will be on the hook for the bad loan.
bump
A little creativity and they could solve all the problems. Many people just need a short term boost, like forgive the back payments as past due (they would still have to pay because it would not reduce the mortgage amount), or, if they are out of work, do a partil pay for 6 months or refi at a lower interest rate etc.
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