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Requests from investors for banks to repurchase soured mortgages have intensified over recent...

Requests from investors for banks to repurchase soured mortgages have intensified over recent months, a trend that has come to light in the latest earnings reports. BofA (BAC) - who else? - faces the worst of it, with outstanding claims soaring over 40% to $22B in Q2. Other affected banks include Wells Fargo (WFC), PNC Financial Services Group (PNC) and Fifth Third Bancorp (FITB).
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Comments (5)
  • MexCom
    , contributor
    Comments (3052) | Send Message
     
    I agree. The investors should sell back all their mortgages along with all the interest that they have previously received discounted from the amount from the original contract. They should not be able to pick and chose from their portfolios. This was not a risk free investment.

     

    I venture to say, most of the mortgages sold are performing assets. The banks would reap a huge windfall of a profit.

     

    Also I drove my car 100,000 miles and have recently found that there is a defect in the motor. We should make the manufacturer take it back and give me a complete refund.
    20 Jul 2012, 06:41 AM Reply Like
  • Tack
    , contributor
    Comments (13538) | Send Message
     
    Mex:

     

    Great comment. But, "Mommie" is supposed to make everything risk free in today's spoon-fed society.
    20 Jul 2012, 07:36 AM Reply Like
  • Okatie Jack
    , contributor
    Comments (92) | Send Message
     
    What ever happened to "Due Diligence"....?
    20 Jul 2012, 10:16 AM Reply Like
  • Pwdrskir
    , contributor
    Comments (135) | Send Message
     
    I call for Claw Backs on Johnson and all the other Fannie & Freddie execs that made $Ms while running those corrupt black holes of Socialist policy (social/taxpayer ownership of mortgage debt “for the greater good of home ownership” – Rep. Barney Frank).
    20 Jul 2012, 05:18 PM Reply Like
  • nuriel_jackson
    , contributor
    Comments (29) | Send Message
     
    Where were the hints of this increase before earnings? Can someone paste a link to any blog or article warning about this loan buy back issue?

     

    I know about the news related to Fannie Mae, so I suppose most of the positive earnings predictions overlooked or downplayed this issue.

     

    How bad is the current uncertainty compared to late last year? And the obvious question everyone is wondering, where is this heading?

     

    For me I've bailed out on BAC to take my modest gains as I am quite suspicious of the backlog of bad loans and whatever games are being played. But I am looking for what might be the worst of it ... is it now? or is it coming soon? or behind us?
    20 Jul 2012, 09:55 PM Reply Like
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