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Friday, February 25, 2011

BofA's legal woes from Countrywide worse than expected

I've highlighted the list of problems that have occured costs.

 An October 2008 agreement to reduce borrowers' payments by as much as $8.6 billion on Countrywide mortgages that state officials said were abusive.

• A March 2010 settlement in Massachusetts requiring the bank to erase as much as $3 billion in principal for severely delinquent Countrywide borrowers who owed more than their homes were worth.

• An agreement last month to pay
Fannie Mae and Freddie Mac $2.8 billion to settle demands for buybacks of flawed home loans. The amount was in addition to about $3.5 billion in such payments already made to the government-controlled mortgage firms.

• Payments that could total in the billions to satisfy investors' demands that BofA buy back Countrywide loans backing non-Fannie and -Freddie mortgage securities.

• A possible multibillion-dollar settlement of state and federal probes into big banks' alleged mishandling of troubled borrowers and home foreclosures.

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