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....
...Several estate agents, including Countrywide, have warned the housing market is likely to slow in the second quarter of this year as uncertainty around the outcome of the referendum weighs on price growth...
...The bundling of lower-quality subprime home loans into mortgage-backed securities drew fierce criticism for its role in the financial crisis....
...“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....
...After carving out the legacy asset servicing business, to work through delinquent home loans, he started in 2011 to cut costs....
...pools and the servicing of the loans....
...Oaktree and Apollo acquired a big chunk of the debt of UK estate agent Countrywide in 2009 following a £300m debt-for-equity swap and recently listed it....
...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....
...Countrywide, the country’s largest estate agency by branches, received strong interest for its return to the stock market in March, with shares priced at the top end of expectations....
...During the boom, MBIA insured bonds bundling Countrywide home loans. Ensuing defaults have produced about $5bn of damages for MBIA....
...(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....
...State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America, over their servicing and foreclosure practices....
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