Further to Phil Stein’s post on Friday, as we continue to parse through the political rhetoric, the fine print of the settlement agreement, and the hoards of misinformation promulgated by the press, we do not believe that investors in securitizations and/or their trustees are entirely left hanging in the wind. While apparently the settlement with… Continue Reading
Servicers to Receive Credits for Principal Writedowns of Loans American Banker’s Kate Berry reports that mortgage bondholders are now threatening legal action over the $25 billion national mortgage settlement, which provides the five largest servicers with “credits” for principal writedowns. The settlement’s final terms, released last week, offer banks incentives to write down the principal… Continue Reading
In conjunction with its publication of the $25 billion settlement agreement, the Department of Housing and Urban Development’s Inspector General released separate reports detailing its investigation of foreclosure-handling practices at five major U.S.banks – JPMorgan, Wells Fargo, CitiMortgage, Bank of America and Ally Financial. The Inspector General’s reports confirm and detail the lengths to which… Continue Reading
The big banks are gearing up for an aggressive buyback season. We’ve recently learned that CitiGroup and Wells Fargo have set aside their largest reserves to date to cover new “repurchase” issues. Many expect insistent demands to rain down from Fannie and Freddie, as the mortgage giants face looming statute of limitations cut-offs for such claims.
Charged for Misleading Investors as the Subprime Mortgage Crisis Began to Deepen The interplay of federal judges, the SEC and the Residential Mortgage Backed Securities disaster continues (and probably will for a long time to come). In Los Angeles, U.S. District Judge David Carter fined former Brookstreet Securities Corp CEO, Stanley Brooks, the sum of… Continue Reading
As described on TheNicheReport.com last week, the rising number of allegedly flawed mortgage loans sold to Fannie Mae by Bank of America has created a rift between these two behemoths, each of which was bailed out by the U.S. government when the American real estate bubble burst. Now, Fannie Mae is pressuring lender Bank of America to cover… Continue Reading
Bank of America (aka BofA) has decided to stop selling mortgages to Fannie. (Check out David Benoit’s recent Wall Street Journal blog post.) This development underscores yet another reason why mortgage loan originators should be extremely hesitant to enter into big-dollar “global” settlements with BofA. Estimated Future Losses A large component of the “damages” that BofA… Continue Reading