A deal was struck yesterday to settle lending complaints, sell rights to service $300 billion of mortgages and repair relations between Regulators and Bank of America. The $11.7 billion agreement will hopefully resolve most disputes with Fannie Mae, even though BofA CEO Brian Moynihan said the bank “largely addressed” the liabilities just two years ago. Bank of America sold the rights to service about 2 million mortgages, and with 9 other banks, will pay $8.5 billion to end reviews of foreclosure-abuse claims stemming from a 2011 deal with regulators.
In the settlement announced yesterday, Bank of America will make a $3.6 billion cash payment, spend $6.75 billion to buy back residential loans sold to Fannie Mae, and pay $1.3 billion in fees for taking too long to assist or foreclose on overdue borrowers, according to separate statements.
In a separate settlement, 10 of the largest U.S. mortgage servicers, including Bank of America, agreed to pay a combined $8.5 billion of foreclosure abuse claims from the 2011 deal with regulators, the Office of the Comptroller of the Currency and Federal Reserve said in a statement yesterday. BofA will account for about $2.9 billion of the settlement, according industry sources. About $1.1 billion of the expenses are in cash payments and $1.8 billion comes in the form of assistance for distressed homeowners.
These numbers may seem boring but this tells the “American Story” very well. All these monies are to fix “abuse” and “negligence” claims yet no wrong doing or jail time for anyone. I guess the best way for a homeowner to resolve their issues would be to follow suit. Audit your loan, then sue the lender! It seems to really work for Fannie, Freddie, the OCC, and the Fed.
_______________________
Mortgage Loan Compliance | The Forensic Loan Audit Company
Proven Results That Work - Get The Facts, Audit Your Loan, Sue Your Lender and Protect Your Rights!
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
No comments:
Post a Comment