Seeking Alpha

Holders of mortgage bonds may be facing billions of dollars of undisclosed losses after a review...

Holders of mortgage bonds may be facing billions of dollars of undisclosed losses after a review of investor documents showed that individual houses are being reported as being in foreclosure long after they've been sold or the loans paid off. The reporting lag has enabled banks and servicers to continue charging investors monthly fees, and could lead to new litigation. The companies involved include Bank of New York Mellon (BK), Wells Fargo (WFC), Ocwen Financial (OCN) and Bank of America (BAC).
From other sites
Comments (6)
  • TBV
    , contributor
    Comments (117) | Send Message
     
    Please check your facts. BAC no longer acting as a mortgage servicer. They do originate mortgage loans but they dont service the mortgages. Therefore this issue has nothing to do with BAC as this is a mortgage service issue and not originators' issue.
    21 Jun 2013, 07:50 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    Wow, this mortgage mess just won't end ha.
    21 Jun 2013, 09:36 AM Reply Like
  • JLD61
    , contributor
    Comments (15) | Send Message
     
    TBV, you need to check your facts. While BAC has recently been selling MSRs and reducing its servicing book, they continue to service mortgage loans. Oh, just shy of $2T. T=Trillion.
    21 Jun 2013, 10:38 AM Reply Like
  • MexCom
    , contributor
    Comments (3054) | Send Message
     
    If there was more robo signing maybe there would be less human error, LOL. This is not new news. Been going on for years when first disclosed and now with the stock making a recovery, shorts are feeding the news services with leads to help them cover. Most foreclosures are being done properly and the deals are closed with legal supervision. During the closing, all fees are listed and settled by the closing attorney. If the account was still being charged for escrows, the former debtor can remedy the situation by simply not paying the bill. The fees for managing bond portfolios backed by these foreclosed properties are getting fully funded and currently at values above the loan value on the book in some cases. This article being referenced is inordinately affecting the stock in a weak market making me a strong buyer with the desire to go all in.
    21 Jun 2013, 11:36 AM Reply Like
  • Chancer
    , contributor
    Comments (2922) | Send Message
     
    "Simply not paying the bill". What an original idea? If any company makes a mistake, and charges me incorrectly, does that mean I can file a lawsuit too? I think I sure missed out on a lot of lawsuits over mistakes. Every business make mistakes. Banks make mistakes. Even the IRS makes mistakes- lots of them. Only in banking can you sue for every nitpicking mistake.
    21 Jun 2013, 02:48 PM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    This is why I tell people that they owe nothing to these banks. If they are dumb enough to loan you some money, take it and run. We cannot sue them and we are expected to sit and grind our teeth like good ole slaves. Bank of America will go down as a case example of an institution that took decades to build and about 5 to dismantle.

     

    What is BAC price now, like 8 or 9 dollars? (Checks) 12$! Wow, thats believable!
    24 Jun 2013, 03:44 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector