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Bank of America (BAC) asks a federal judge to dismiss a $1B DOJ lawsuit accusing its Countrywide...

Bank of America (BAC) asks a federal judge to dismiss a $1B DOJ lawsuit accusing its Countrywide unit of selling defective mortgages to Fannie and Freddie just as the real estate market was busting. District Judge Jed Rakoff - after hearing arguments this morning - says he intends to issue a ruling in about two weeks.
Comments (14)
  • ppk721
    , contributor
    Comments (43) | Send Message
     
    Hey BofA you were stupid enough to buy those Countrywide crooks now eat an additional billion $$$--Dont be a candy ass judge just Nail Them
    30 Apr 2013, 10:48 AM Reply Like
  • JayXu
    , contributor
    Comments (260) | Send Message
     
    Anybody from countrywide got arrested and put into jail?
    30 Apr 2013, 10:53 AM Reply Like
  • ppk721
    , contributor
    Comments (43) | Send Message
     
    NO--only fined
    30 Apr 2013, 11:07 AM Reply Like
  • MexCom
    , contributor
    Comments (3051) | Send Message
     
    BAC didn't do anything in the situation except for bailing out Countrywide to save the whole economy. Trying to punish the innocent will do no good. The Judge has to realize that it was the homeowners that couldn't afford to continue to pay their loans as the ultimate cause for the melt down. In all cases, these were performing loans that defaulted after bundled securities were sold. There was risk involved. The risk was explained in the prospectus.
    30 Apr 2013, 11:25 AM Reply Like
  • Renoira
    , contributor
    Comments (86) | Send Message
     
    It Wasn’t the Home Buyers!

     

    Following is a list of settlements that not only acknowledge illegal behavior, but serve as evidence that the home-buyers were not the perpetrators of this fraud:

     

    10/6/2008 – $8.68 billion dollar settlement with Countrywide for the State of California – relief for home-buyers - ?
    8/3/2010 - $600 million dollar settlement with Countrywide Financial with the New York City Pension Funds – relief for homebuyers – 0
    10/15/2010 - $67.5 million settlement with the SEC – relief for homebuyers – 0

     

    2/2/2011 – Former Countrywide executives make a $6.5 million settlement with California - relief for homebuyers – 0
    6/29/2011 – B of A settles with 22 institutional investors for 14 billion. – relief for homebuyers – 0
    7/20/2011 – Countrywide settles a class action suit for charging excessive fees to more than 450,000 borrowers. – relief for homebuyers - ?
    12/21/2011 – Countrywide settles bias suit for $335 million dollars for discrimination – relief for homebuyers – ?

     

    2/2012 – $25 Billion dollar 48 state settlement with 5 major lenders. – relief for homebuyers yet to be determined, but they are still losing their homes.
    From the article in Huffington Post, 4/23/2013
    “In February of last year, five large banks, including Bank of America, agreed to a $25 billion settlement with 49 state attorneys general and federal authorities to resolve broad-based and persistent claims that they mishandled home loans in crisis. The banks were accused of charging improper fees while dispatching homeowners on customer service misadventures that often terminated in foreclosure. On Thursday, Bank of America and other mortgage companies -- 13 in all, this time -- finalized a separate $9.3 billion
    settlement with federal bank regulators to resolve similar claims.
    The settlements also required the mortgage industry to revize loan "servicing" practices -- how it manages homeowner accounts --widely seen as unfair and damaging. The deadline to make those reforms was Oct. 1.
    Banks may face fines of up to $1 million for each violation.

     

    Berry (a borrower) will receive nothing under these high-profile legal deals, even though she claims the same types of abuse that the settlements were meant to resolve. She is not alone, consumer advocates say. While these agreements have led to an uptick in aid for some borrowers, for many others, the deals might as well have happened on a different planet.”

     

    11/2012 - JP Morgan and Credit Suisse Settle With SEC For $417 Million Relief for homebuyers who were victims of this fraud? - 0

     

    1/2013 - HSBC To Pay $249 Million In Foreclosure Settlement
    “WASHINGTON (AP) — British bank HSBC will pay $249 million to settle federal complaints that its U.S. division wrongfully foreclosed
    on homeowners who should have been allowed to stay in their homes.
    The agreement with the Federal Reserve and the Office of the Comptroller of the Currency is similar to deals with 12 other banks that
    ended a review of loan files required under a 2011 federal action. Combined, the 13 banks will pay $9.3 billion.”

     

    2/2013 - $8.5 Billion dollar settlement for wrongful foreclosures. Relief for homebuyers for losing their homes? $300 - $2000 dollars. (I have yet to hear of anyone getting $125,000 as noted in settlement).

     

    3/2013 – LA Times reported that they found 1600 pages of undisclosed settlements filed with the FDIC against major banks!
    Relief for homebuyers? - 0

     

    With all the settlements and court cases regarding bank fraud still pending, the lenders are still allowed to foreclose and remove families from their homes. This is making countless families homeless and destroying the moral of millions of American citizens.

     

    Yet the evidence tells us that these families have been lured into liar loans and later into default:

     

    A) The FBI estimates that 80 percent of all mortgage fraud involves collaboration or collusion by industry insiders.
    B) Register of Deeds, John O’Brian has documented massive fraud.
    C) San Francisco study found 85% error in foreclosures
    D) Movies: Too Big Too Fail, Insider Trading, Margin Call, and most recently, We Are Not Broke

     

    So for homebuyers the question is…why are we still paying for the fraud? And why are we the ones being labeled the “deadbeats” while the Executives that created this fiasco are getting bailed-out and they are getting huge bonuses in addition?

     

    In addition, the lawsuits have not ceased…
    February 2013 – U.S sues the S & P for ratings fraud related to Mortgage-Backed Securities (MBS).

     

    “The U.S. government is seeking $5 billion in its civil lawsuit against Standard & Poor’s, accusing the ratings service of defrauding investors, in one of the most ambitious cases yet from the Justice Department over conduct tied to the financial crisis.
    The United States said S&P inflated ratings and understated risks associated with mortgage securities, driven by a desire to gain more business from the investment banks that issued those securities. S&P also falsely claimed its ratings were objective, the lawsuit said.”
    April 2013 - AIG is suing B of A for mortgage fraud:

     

    “(Reuters) - American International Group Inc (AIG.N) won a legal victory over where a mortgage fraud lawsuit it brought against Bank of America Corp (BAC.N) should be heard, a two-year-old case that has largely been on hold because of the dispute over venue.
    The 2nd U.S. Circuit Court of Appeals on Friday agreed with AIG that the case belongs in state court, not federal court as Bank of America preferred.”

     

    April 2013 – Prudential Insurance sues Goldman Sachs for Mortgage Fraud and Racketeering on MBS :
    “Goldman fails to dismiss Prudential mortgage fraud lawsuit
    * Prudential alleged losses on more then $375 mln RMBS
    * Fraud, racketeering claims allowed to proceed
    * Goldman, Prudential decline to comment
    By Jonathan Stempel
    April 9 (Reuters) - Goldman Sachs Group Inc must face a lawsuit in which Prudential Financial Inc accused the Wall Street bank of defrauding it into buying more than $375 million of residential mortgage-backed securities it knew were unsafe.”
    April 2013 - Foreclosure Review Finds Potentially Widespread Errors
    “BOSTON -- Nearly a third of all foreclosed borrowers who faced proceedings brought by the biggest U.S. mortgage companies during the height of the housing crisis came to the brink of losing their homes due to potential bank errors or under now-banned practices, regulators have revealed.
    Close to 1.2 million borrowers, or about 30 percent of the more than 3.9 million households whose properties were foreclosed on by 11 leading financial institutions in 2009 and 2010, had to battle potentially wrongful efforts to seize their homes despite not having defaulted on their loans, being protected under a host of federal laws, or having been in good standing under bank-approved plans to either restructure their mortgages or temporarily delay required payments.”

     

    Well, I better stop now. I’m already exceeding space allotment and the list is not nearly exhaustive (considering the 1600 pages filed with the FDIC).
    30 Apr 2013, 12:29 PM Reply Like
  • ppk721
    , contributor
    Comments (43) | Send Message
     
    Too save the economy---your serious right---so in that case ,I have swamp land you can buy cheap- Dude Wake Up.
    1 May 2013, 10:50 AM Reply Like
  • mphill47
    , contributor
    Comments (509) | Send Message
     
    We are in society that has to blame someone else for one's own misfortune or bad investment and in this case it's BAC. These are the same people who look to the government to fix all of their problems and reimburse them for their losses (I think they call themselves 99%ers) . In this case they should be ecstatic that BAC is around to pay the bill for the misdeeds of CW.
    30 Apr 2013, 12:25 PM Reply Like
  • stargazers
    , contributor
    Comments (21) | Send Message
     
    Thk u form nice update
    30 Apr 2013, 06:33 PM Reply Like
  • drogersw6509
    , contributor
    Comments (7) | Send Message
     
    This is comical Fannie and Freddie are suing BAC for selling them bad paper.
    Fannie and Freddie can’t see bad paper, are not they in that business. If they can’t analyze a loan to buy, they should go out of business.
    30 Apr 2013, 12:35 PM Reply Like
  • jetter74
    , contributor
    Comments (2) | Send Message
     
    Ken Lewis didn't do enough homework before buying Countrywide. Big mistake. HUGE mistake. Hopefull BoA won't have to issue more stock. There were 4.5 billion shares before the crisis, now there are 10 billion shares. That's enough.
    30 Apr 2013, 12:37 PM Reply Like
  • dtron
    , contributor
    Comment (1) | Send Message
     
    Agree with your point on punishing the guilty rather than based on ability to pay and that the acquisition was done to stabilize the system. Having said this I disagree with your point that these were performing loans. The loans became non-performing because of the loan structures and adverse conditions in the housing market and general economy – not because of securitization. Countrywide had relaxed underwriting standards and did or should have known that many would be non-performing in the event of stress in the housing market. The reality is they didn’t much care since they were being securitized and moving off their books. The question is did BAC assume these potential liabilities when they acquired Countrywide. Frankly the rating agencies should be liable to a greater extent as the banks and Countrywide were just selling a product and because of the inflated ratings they carried, investors did not have an accurate representation of potential risk which they could be compensated for.
    30 Apr 2013, 12:44 PM Reply Like
  • Renoira
    , contributor
    Comments (86) | Send Message
     
    "April 2013 - Foreclosure Review Finds Potentially Widespread Errors
    “BOSTON -- Nearly a third of all foreclosed borrowers who faced proceedings brought by the biggest U.S. mortgage companies during the height of the housing crisis came to the brink of losing their homes due to potential bank errors or under now-banned practices, regulators have revealed.
    Close to 1.2 million borrowers, or about 30 percent of the more than 3.9 million households whose properties were foreclosed on by 11 leading financial institutions in 2009 and 2010, had to battle potentially wrongful efforts to seize their homes despite not having defaulted on their loans, being protected under a host of federal laws, or having been in good standing under bank-approved plans to either restructure their mortgages or temporarily delay required payments.”

     

    That was just in 2009 and 2010, that doesn't cover those who are struggling in recent years. READ THE ABOVE PARAGRAPH " HOMEBUYERS HAVING BEEN IN "GOOD STANDING" UNDER BANK-APPROVED PLANS were still foreclosed upon.

     

    It is still happening, while those who feel their "dividend" slipping want to blame the little inexperienced homebuyer who just wanted a home for their family, instead of the blaming the CEO's who are taking your dividends to pay themselves excessive bonuses, even though they are guilty of (at the very least) making bad decisions.
    30 Apr 2013, 01:26 PM Reply Like
  • FinanceGuy77
    , contributor
    Comment (1) | Send Message
     
    The only reason BAC is being fined is b/c they are still making huge profits (interest) on the mortgages that did not go into foreclosure. Although a lot of them did fail and fold under the ones that are still around and making BAC money is at least ten fold of that $1 Billion judgement. The main reason BAC is contesting this is also to protect other banks from being sued in the same manor. (Read between the lines/ it is not just Black and White)
    30 Apr 2013, 12:48 PM Reply Like
  • new slang
    , contributor
    Comments (164) | Send Message
     
    Finance guy, I'm not sure wat your getting at... the costs of the Countrywide purchase far exceed any profits from performing mortgages that were obtained in the deal.
    30 Apr 2013, 02:13 PM Reply Like
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