Tuesday, January 8, 2013

10 banks pay $20 Billion settlment to Fannie Mae: Band of America admits wrongdoing pays $10B

1/08/2013 -- Bank of America is paying into the $20 billion settlement with Fannie Mae approximately half of the settlement monies. $10 Billion -- $10 Billion to Fannie Mae. Finally we have some headway in the foreclosure fight. According to Reuters on Tuesday morning, Bank of America is the largest payer of settlement monies to Fannie Mae.
Bank of America, other banks move closer to ending mortgage mess | Reuters:
FIRST LET ME APPLAUD BOA for finally seeing the writing on the wall and acknowledging that homeowners were not just trying to get out of paying their mortgage -- as we heard so many people, and judges saying. My Father excited to see the bank settlement agreement; read me the sentiments issued on the front page of Los Angeles Times and my hubby said - I wish we could mail that news clipping to every person that said people were "just trying to get out of making a house payment." I would send it to SEVERAL JUDGES who perpetrated the crimes against homeowners.

You will have to pick up the paper edition of LA TIMES to get the scoop! Here is one recommended article for those that want a personal background of just one story. Borrowers feel relief with BOA settlement.  I still have trouble calling it borrowing, knowing that everything was based on fraud - there is not meeting of the minds nor a contract with fraud. Further many trails show that the "loan" was sold immediately with excess that should have gone to the "loan."  Basically you allegedly sold your signature and that signature is still floating out there somewhere as evidently the banks do not return notes according to the document requirements. But that is a side-trip.

LA Times outlined the BOA settlement breakdown and mentioned that BOA will SELL SERVICING RIGHTS of 2 million remaining mortgages.  LA Times gave the scoop:
"The settlement includes a $3.6 billion payment to Fannie Mae. Bank of America will also buy back some of the loans sold to Fannie Mae for $6.75 billion." 
That doesn't  mean homeowners will be paid back... it does mean that Fannie Mae will regain their money wrongfully spent. It also means that the remaining servicing transfers could result in another company wrongfully foreclosing in the future. We have no assurances (from the new reports) that the servicing transfers will be done in accordance to contract laws.  The banks allegedly often broke the laws by foreclosing first and doing the legal paperwork second.

Now I am thrilled that the government is getting its blood and truthfully that money should go right back to restoring those defrauded by this bank.  But seriously I do have a few issues with this settlement. Today's headline by Reuters hits my response it dead on: "Bank of America, other banks move closer to ending mortgage mess | Reuters."  - why FINALLY?

For those thinking this will end the mortgage mess, think again. Read the reports and not the headlines.

First: What about all the people EVICTED from their homes that did not have Fannie Mae loans.  We and several of our friends will be okay because our loans were Fannie Mae. W don't know what will happen after the buyback... perhaps nothing. Perhaps no money will be returned... but there is this:

 I believe THE BANKS BY SETTLING ARE INDICATING THAT THEY DID AMERICA WRONG!!!  It doesn't matter if they deny wrongdoing - as they have over the past 4 years but it is sure that they did do wrong. - former homeowner

Second:  Why aren't they throwing the banksters in jail for FRAUDING this country for years.   This housing crisis caused by them has impacted our ECONOMIC stability. Which means that it wasn't just homeowners that were impacted.

Third:  Is 20  Bllion enough?   They should just pay off every loan in America, restore the recorded land records to reflect true ownership, and pay damages to those who were victims of fraud.

I do feel sort of sorry that BOA took over Countrywide (the largest lender) and now has the shaft. BUT the logical side of me says --- A) they knew what they were taking on  B) They did not correct the wrong and continued wrong doing. C) The committed FRAUD

Now CHASE and WELLS FARGO and all the other entities can go rot in jail with BOA, as far as I am concerned.   They did MORE than their fair share of wrongdoing.

Of course this is not the first time that Bank of America has admitted wrongdoing; two years ago in 2010, a headline grabbed our attention:
Bank of America admits fraud in US antitrust case(AFP) – Dec 7, 2010 
WASHINGTON — US banking giant Bank of America has admitted it committed fraud in the municipal bond derivatives market and will pay 137.3 million dollars in damages, the government said Tuesday.
"Bank of America entities have agreed to pay a total of 137.3 million dollars in restitution to federal and state agencies for its participation in a conspiracy to rig bids in the municipal bond derivatives market," the Department of Justice said in a statement.

A pattern of fraud seems to have developed with banks that are too big to fail. But finally after years of hearing people say that  there is no problem; I am glad that there is some sense of knowing that the wrongdoing is finally admitted to and seen by others. The way reports read you would think media was responsible for blowing the whistle on the banks corruption.

I'll leave you with this: Google Search:

  1. Bank of America in $10 billion settlement with Fannie Mae

    CNNMoney-48 minutes ago
    Bank of America has reached a $10.3 billion settlement with Fannie Mae to deal with questionable home loans it sold to the ...
In Deal, Bank of America Extends Retreat From MortgagesNew York Times-12 hours agoBank of America puts to bed claims from housing crisis, while ...Washington Post-12 hours agoBank of America, other banks move closer to ending mortgage messIn-Depth
-Reuters-17 hours ago

all 944 news sources »

  1. Big Banks Settle Mortgage Hangover

    Wall Street Journal-by Shayndi Raice-14 hours ago
    Bank of America will pay $3.6 billion to Fannie Mae as well as repurchase certain mortgage loans made from 2000 through 2008 for $6.75 ...

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