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Excerpt: "Bank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans."

File photo, Bank of America building. (photo: AP)
File photo, Bank of America building. (photo: AP)


Bank of America in $10 Billion Foreclosure Settlement

By Reuters

07 January 13

 

ank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans, in a series of deals meant to help the bank move past its disastrous 2008 purchase of Countrywide Financial.

The settlements and transactions and other charges will result in Bank of America posting only a small profit for 2012's fourth quarter. The bank is due to report results on Jan. 17.

Bank of America is paying $3.6 billion to Fannie Mae and buying back $6.75 billion of bad loans from the mortgage company to clear up all claims that government-owned Fannie Mae had made against the bank.

Fannie Mae and its sibling, Freddie Mac, have been pushing banks to buy back loans they sold to the two companies that never should have been sold to them because the loans did not meet the companies' criteria for purchasing.

Bank of America said most of the settlement would be covered by reserves, and another $2.5 billion, before taxes, that it set aside in the fourth quarter.

A separate settlement over foreclosure delays will result in Bank of America paying $1.3 billion to Fannie Mae, the mortgage company said. Bank of America had already set aside money to cover most of that, but took another $260 million charge in the fourth quarter to cover the balance.

Bank of America also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management. Nationstar is paying $1.3 billion for the right to service some $215 billion of loans, while Walter Investment is paying $519 million for the right to service about $93 billion of mortgages.

Reuters first reported that Bank of America was talking to Nationstar and Walter Investment on Friday.

After the announcement, shares of Bank of America traded higher in pre-market trading.


 

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+16 # dkonstruction 2013-01-07 10:34
Another settlement more (if not totally) about clearing up the banks' books rather than doing anything to help the homeowners screwed by the activities of these institutions. To make matters worse, Fannie Mae, which is now owned by us, the taxpayers, is now one of the leading foreclosers in the nation. And, why are we allowing these criminal institutions to continue to sell the rights to service (i.e., collect the monies) to the fraudulent crap they peddled instead of demanding as part of the settlement that the federal gov't will take these over while at the same time stopping all future foreclosures and implementing altenative solutions such as rent to own that would keep current homeowners in their homes and help stabilize neighborhoods that have been decimated by foreclosures and the proliferation of vacant properties.

This is also what happens when the non-profit industrial complex decides to "help" individual homeowners facing foreclosure (and for which they receive lots of funding from both the gov't and the banks) instead of organizing the millions who were known to be facing foreclosure to put up a unified and collective fight against the banks.

So, while we rant against the banks and the gov't for doing nothing to help homeowners it is also long past time that we also take a critical look at the role of the non-profit industrial complex for "managing" problems instead of looking to solve them and truly help those who have been hurt most.
 
 
+6 # BradFromSalem 2013-01-07 12:01
Well said.

This is just another example of the top, in this case being our political leaders, not realizing that the cure lies not in resolving the problems of those that are also at the top, the banks, but in solvcing the problrems of the individual.

Just as resolving the employment problems lies not in helping business get money so that they will create jobs, but rather in creating jobs so that businesses will get money to create needed jobs.

In the case of foreclosures, the best outcome would have been that EVERYONE that took a loan out during the bubble got back their cut of what the banks stole. If the loan was still outstanding, it comes off the loan as principal. If not, then its a cash or an annuity type of payment.

If this was done early in 2009, we would be well back into a booming economy, and the Tea Pot Heds would just be a glimmer in Dick Army's eye.

So, in the spirit of building the economy by helping the individual over the corporation. Bottoms Up!
 
 
+20 # jmac9 2013-01-07 11:48
New justice system for the rich:

PAY A FINE. then go on about your business screwing everybody over. No jail time. Not one banker has gone to jail...

but if you - average citizen - if you embezzled or lied like the banks did - you are going to jail, lose your property and voting rights for years.

With this fractured perverted capitalist system the basic agenda is:

Profit is more important than you.
 
 
+2 # giraffee2012 2013-01-07 13:28
Where are the Congress People who CAN put a lawsuit against B of A (or any bankster robber)? And then we need Scalia/Thomas (RATS) to resign so we can enforce the lawsuit.

Until these occur - we, the people (47-99%) will bet screwed until there is no more middle class!

Oh yeah, quit giving "entitlements" to OIL companies, banks, GE, Haliburton, etc - but this thought also requires a law passed on Congress.

Oh I forgot "Congress is more interested in passing abortion laws than taking care of the economy!!!!"
 
 
+1 # KrazyFromPolitics 2013-01-07 15:40
Why not have that money go to the people that were screwed out of their homes? Typical crap...another meaningless gesture of transferring money from one criminal enterprise to another. Where are the indictments and jail time? I guess some are too big to go to jail, which is total bullshit. Madoff is in jail, because he stole from the wealthy... not rocket science.
 
 
+2 # Granny Weatherwax 2013-01-07 16:02
"After the announcement, shares of Bank of America traded higher in pre-market trading."

This means they had a deal when they settled, i.e. they ripped off Freddy and Fanny.
Again.
 
 
+1 # Doubter 2013-01-07 18:38
"....Bank of America posting only a small profit for 2012's fourth quarter."

My heart bleeds for them.


"After the announcement, shares of Bank of America traded higher in pre-market trading."

What a relief! All is not lost.
 
 
0 # Michael_K 2013-01-07 20:20
Hey... All you "lesser evil" folks are accomplices in this... just sayin'..
 
 
0 # rocketrob 2013-01-08 07:53
Yes you should have the right to question the standing issues in your case. Hat tip Stopforeclosure fraud: http://www.ncbrc.org/blog/2012/12/20/debtor-has-standing-to-argue-failure-to-comply-with-terms-of-psa/ FREE SECURITIZATION LOOK-UP LINK >>> https://bpia.wufoo.com/forms/free-securitization-check-courtesyrob-harrington/
 

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