Bank of America and other Lenders are going to buy back a lot of loans because of foreclosure -gate

http://foreclosuresolvers.com/loan-modification-guide/

Because of the discoveries from the foreclosure-gate investigations, Bank of America, JP Morgan and other lenders are going to be required to buy back billions of dollars in bad loans that were packaged and sold as AAA rated securities. Insiders has testified that up to 80% of the loan they sold did not meet their own underwriting standards. So this meant those loans had a high likelihood of defaulting which most did.

Now heavy hitters like PIMCO, the New York Fed and other are demanding these originating lenders buy back these bad securities because of breach of contract and fraud.

If these lenders really get stung by this and can't continue to sell these bad loans to the federal government, they may be more motivated to offer easier and more effective loan modifications in the future.

Category:

News & Politics

Tags:

• foreclosuregate
• foreclosure
• fraud
• securities
• MBS
• CDOs
• mortgage crisis

[WGS669]

No mention of notes being pledged to multiple buyers at the same time. Or of notes being sold, but undelivered, and then used in repo agreements. What is the "paperwork", or lack of it, really hiding? The filing fees are meaningless in comparison. QE has quarantined much of that counterfeiting scheme. Is there more?

[foreclosuresolvers]

@WGS669 Registering who owns the loan with the county prevents the securities boys from selling the same loan to multiple parties at the same time or other similar fee generating exercises.

It gets much better when you add Credit Default Swaps to this picture. The notional value of these things have no relationship to the real economy. I am sure most of the US would be totally disgusted at a minimum if we knew where all the taxpayer money went with AIG.

[grandmasterqz]

you have done us all a great service good sir, thank you .