Senario #1.) A bunch of Banks admit wrong-doing and Modify a few million loans to help homeowners.
Senario #2.) A bunch of Banks file Default Judgements against a few million ex-homeowners.
If Vegas was running a book, I know which way I would bet!
Again - There are NO LOAN mods. Lender by its own admission sold the asset to investors. There are no servicing rights with assets delivered in to a Statutory business trust.Only a holder in due course or servicng agent can negotiate a mod or short sale.
You cannot short sale somthing that represents the lendes reoucrse and buyback provision. The homes are sole short at sale abyway in a controlled or "rigged" bid and lender there is off the hook for recourse. ITS MAKING REALTOS LOOK LIKE A$$ES .ITS GOT TO STOP ...
How will mortgage modification be effected?
Ash, hmm not sure what you mean here my level headed friend.
By BofA's payment of $3billion
What? $3 billion in what ! ! ! . Are you kidding? BAC is on the brinks of a knock out and right behind CitiFinancial group who should not be around by months end. R E C E I V E R S H I P
Mortgage bond investors say the home loans should never have been sold to them in the first place because they did not meet investors' underwriting requirements. Bank of America said it made cash payment to Freddie Mac as part of an agreement to end all claims through 2008 related to mortgages sold by Countrywide. The bank paid Fannie Mae $1.34 billion in cash and applied certain credits to reach an agreed $1.52 billion settlement on 12,045 Countrywide loans.
Bank of America said it would put aside $3 billion in the fourth quarter related to the Fannie and Freddie claims and expects to record a goodwill impairment charge of $2 billion in the quarter in its home loans and insurance business unit.
For Countrywide substandard practices?
BofA is Countrywide. Angelo M. Started Indy Mac Bank remembers. Bof A swept him away and floored the entire toxicity tax payer taking the hit for.
More recently, I've found their Equator online system runs much more effectively in evaluating a short sale vs. some of the other lenders. For the volume of loan mods/short sale that they are considering, I imagine they are much more efficient that some lenders with a much smaller case load.
So I only care about how they're handling MY clients' situation. The $3B payment is more related to the national economy and how much longer we will have to deal with this issue, not the day to day operation. But that's the opinion of one of the little guys who is trying to help resolve the situation, not the bigwigs.
Bank of America announced in December that it would move more than 2,000 employees from the origination department to the modification side to help meet a surge in home retention needs.
Several state attorney generals are implementing foreclosure moratoriums for their states and getting banks to agree to modification programs. They have come to an agreement with AGs in almost all 50 states with the nation's top five servicers.
As a result of the mishandled foreclosures, Paul Leonard from the Center for Responsible Lending told Bloomberg the group of attorneys general â€œoffers one of the most promising avenues to increasing loan modification and servicer accountability that we have seen so far.â€
Hope this info helps. You can continue to follow the story as it unfolds on my team Facebook fan page "The Dream Team 21 Gold"