Tag Archives: BofA

Judge Denied Bank of America’s Motion to Dismiss $850M Mortgage Fraud Case

Last week, Magistrate Judge David S. Cayer of the U.S. District Court for the Western District of North Carolina denied Bank of America’s motion to dismiss the Security and Exchange Commission’s claims against it in SEC v. Bank of America Corporation, et al. The SEC’s complaint is founded upon allegations that “[t]he Bank of America  … Continue Reading

Bank of America’s $8.5 Billion Settlement Will Not Be Delayed by AIG

Late last month, a New York state judge denied AIG’s request to delay approval of Bank of America’s $8.5 billion settlement with private investors in connection with certain mortgage-backed securities that had soured. Bank of America agreed to the settlement in June 2011 in order to resolve claims brought by institutional investors such as Black … Continue Reading

Bank of America Foreign Exchange and Mortgage Practices Under Investigation

On Tuesday, Bank of America disclosed in its annual report with the US Securities and Exchange Commission (SEC) that “government regulators” in North America, Europe and Asia are investigating its foreign exchange and mortgage practices and that the U.S. Department of Justice (DOJ) and state attorneys general are also investigating its handling of mortgage loans … Continue Reading

Bank of America and Freddie Mac Settle Mortgage Loan Claims

Add yet another major settlement to the still-growing list of huge payouts by the nation’s largest banks to settle claims over toxic mortgage-backed securities. Bank of America has now agreed to pay $404 million to Freddie Mac to resolve all repurchase liabilities on home loans that it sold to the government-controlled mortgage company from 2000 … Continue Reading

BofA’s Countrywide Found Responsible For Defrauding Fannie Mae & Freddie Mac

A federal jury ruled yesterday that Countrywide, now owned by Bank of America, defrauded Fannie Mae and Freddie Mac by selling them defective mortgages in advance of the great financial crisis of 2008. A former Countrywide executive, Rebecca Mairone, was also found liable in the case. Whistleblower Exposed Countrywide’s “Hustle” Program The Justice Department lawsuit … Continue Reading

DOJ and SEC File Suits Against Bank of America

Civil Lawsuits Filed Stop me if you have heard something like this before.  The Department of Justice announced a civil lawsuit on Tuesday alleging that Bank of America defrauded buyers of mortgage-backed securities by lying about the quality of the home loans involved. The Securities and Exchange Commission also announced a parallel case against BofA. … Continue Reading

Bank of America Won’t Quit While It’s Ahead

BofA’s About Face on Global Resolutions In previous posts, we highlighted our concerns related to Bank of America’s “repurchase” demands asserted against residential mortgage loan originators. We knew that for years, BofA steadfastly refused to entertain global resolutions of its repurchase claims. Then, beginning in early 2012 and continuing to this day, BofA became hell … Continue Reading

What a Settlement – Banks and Government Think They Can Work off Debt by Hurting Investors!

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

Bank of America to Mortgage Originators on Buyback Claims: “Heads I Win, Tails I Still Win”

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
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