Wednesday, August 31, 2011

Bank of America Settlement Faces Growing Challenges -

It is not looking good for banks right now. The settlements might be the tipping point. Why did the banks hide all the fraud????

Bank of America Settlement Faces Growing Challenges - "In a separate new case, U.S. Bancorp, the trustee of a $1.75 billion mortgage pool originated by Countrywide Financial in 2005, sued to force Bank of America to buy back the underlying mortgages, arguing that the loans were made without proper documents and did not conform to underwriting standards.

“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."

'via Blog this'

No comments: