Hints and tips:
...At some point, these companies won’t be able to keep servicing their debts....
...Spain’s residential real estate prices fell up to 40 per cent in the crash, leading to widespread mortgage defaults and more than 500,000 unsold new homes....
...That is particularly true because it retains a portion of its home loans, rather than syndicating them....
...Do not try this at home, so to speak. MSRs are a hyperbolic way of hedging rate risk....
...The bundling of lower-quality subprime home loans into mortgage-backed securities drew fierce criticism for its role in the financial crisis....
...After carving out the legacy asset servicing business, to work through delinquent home loans, he started in 2011 to cut costs....
...“We’ve been providing relief prior to NMS and continue to provide opportunities to customers experiencing hardship,” says Alan Jones, senior vice-president in Wells Fargo Home Mortgage’s servicing group....
...pools and the servicing of the loans....
...The settlement was based around investor allegations – which BofA still disputes – of mortgage loan-servicing breaches and documentation defects at the bank and its Countrywide unit, acquired in 2008....
...(Financial Times) China’s June new home prices rose in all but one city, in the latest official survey of 70 cities....
...Nearly two years ago to the day, Bank of America announced it had resolved “substantial legacy issues” with respect to Countrywide Financial home mortgages it sold on to groups including Fannie Mae....
...“This trend will continue as the US government works to reduce its exposure to future mortgage loan losses.”...
...The deal also allows BofA to speed up the cost savings planned for its “legacy asset servicing” division, which employs more than 40,000 people to deal with bad loans....
...It has already transferred rights on $300bn of home loans in two deals this week, in response to Basel III capital rules that will make it costlier to hold MSRs....
...NEWS Banks reach mortgage settlements of more than $20bn: BofA agreed to pay $11.6bn to Fannie Mae to resolve a protracted legal battle over bad loans....
...Annual results released yesterday passed without direct mention of plans for the home loans unit. At a conference last month, Mr Moynihan said only: “We look at all options for Countrywide.”...
...From 2004 to 2008, the bank allegedly overcharged more than 200,000 minority borrowers for home loans compared with similar white borrowers, according to the US Department of Justice....
...Cemex has so far met every obligation and condition attached to a $15bn bank loan in 2009, which saved it from bankruptcy. In other words, it has been a good debtor....
...home seizures....
...US Bancorp demanded that BofA be forced to repurchase all of the loans because so many – “an extraordinary 66 per cent of the loans” in a sample – breached Countrywide’s stated lending requirements....
...State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America, over their servicing and foreclosure practices....
...They are close to an agreement on future standards governing the servicing of home loans, yet remain far apart on other issues, such as legal liability claims, compliance and enforcement, and the amount...
...The court filing made on Tuesday accused BNY Mellon of failing as trustee in multiple ways, especially in not forcing Countrywide to buy back faulty home loans but also because it put its own interests ahead...
...Mr Moynihan had turned to Mr Laughlin earlier this year to manage BofA’s $850bn portfolio of troubled home loans, a portion of which the bank had inherited through its disastrous 2008 acquisition of Countrywide...
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