It is not looking good for banks right now. The settlements might be the tipping point. Why did the banks hide all the fraud????
“Soon after being sold to the trust, Countrywide’s loans began to become delinquent and default at a startling rate,” the complaint, filed Monday by U.S. Bancorp, said. “During the time period in which Countrywide originated the loans, it completely ignored its underwriting guidelines.” Bank of America acquired Countrywide, a subprime lending giant, in 2008.
The courtroom maneuvering on both fronts underscores the legal threats looming over Bank of America as a result of the collapse of the housing bubble and the disastrous acquisition of Countrywide, a $4 billion purchase that has already cost the bank more than $30 billion."
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