BofA Segregates Almost Half of its Mortgages Into `Bad Bank’
Bank of America Corp. (BAC), the biggest U.S. lender by assets, is segregating almost half its 13.9 million mortgages into a “bad” bank comprised of its riskiest and worst-performing “legacy” loans, said Terry Laughlin, who is running the new unit.
“We are creating a classic good bank, bad bank structure,” Laughlin told investors at a meeting in New York today. He was promoted last month to manage the costs of resolving disputes stemming from the company’s 2008 purchase of Countrywide Financial Corp. “We’re going to get after this, we’re going to do it the right way and we’re going to put it to bed in the next 36 months,” he said.
The legacy portfolio will hold 6.7 million of loans with outstanding principal balance of about $1 trillion, according to a presentation to investors today. The split leaves home loan President Barbara Desoer with about half her previous portfolio, as well as new lending going forward.
Laughlin’s portfolio will include loans that are currently 60 or more days delinquent as well as riskier types of loans the bank no longer originates, such as subprime, Alt-A, interest- only and option adjustable-rate mortgages, he said. He said the portfolios will be completely split by March 31 and that his will be liquidated over time. Of the 13.9 million loans Bank of America services, about 3.5 million are held by the company on its balance sheet. The rest are owned by other investors.
Check out the rest here…
They are telling there investors what exactly? How much longer is the charade going to go on? I f I were one of their investors I would be sueing them by now. What kind of returns are these investors seeing? The books are cooked. Time to pay the piper you idiots, face the music, the jig is up. The American people are sick of paying for all of the fraud and corruption. Time to freeze their assets and pay back the people THEY ROBBED.
Check out the Keiser report from yesterday. Max is spot on as usual. http://rt.com/programs/keiser-report/ It is episode #127. He talks about the dictatorship we are all living in and how WE can fix it.
You know, I can’t help wondering how many of those ‘homes’ on crappy mortgages, or hidden in the shadow inventory, are in the ‘completely uninhabitable’ category – you know, the sort you see in deserted ‘neighbourhoods’ with boarded-up windows, stripped wiring & plumbing, & overgrown yards?
Do local councils do surveys of their local housing stock, keep statistics?
Mine is not a crappy home. It is really nice. 2 miles from the beach ….great house good location….wanna buy it???? I’ll give you a great price!!!!!
Don’t you have to love it! B of A just lops off the bad loans to be liquidated and goes about business as usual. This company is so bogus. You know they don’t have good title on most of the Countrywide stuff. We have become a nation at the mercy of big bank corporate capitalism that we must sustain because they are too big to fail yet they continue to rape the public with fraud, deception and predatory double-dealing. No one is big enough to call them to task it seems.
All of their hands are dirty. That is why they continue to lie and cover-up. They all shared in the theft of our wealth. One hand washed the other hand.
I would think that the half of BOA’s mortgages going into the “bad” bank would be those that they sold to ten different loan pools, or: took out in borrowers’ names right after they applied for a loan but before they received it,or: loans which they foreclosed upon without forwarding the proceeds of the subsequent sale to the poper party,or: loans for which they were paid by a borrower’s refinance by a different “lender”, marking the borrower’s court records with a “satisfaction of mortgage”, and pocketing the money. After all, who would know? How would they ever find out? If they did find out, what would they do about it? Nobody. Nothing. And Nothing. Fake satisfactions of mortgage! Why those crazy guys-what’ll they think of next! Fake HAMP modifications where the modify and foreclose at the same time? Ha! Oh,,,,er,,,,whadya mean they already did that-really?
Your humor, unfortunately, is the truth. Black is White, Up is Down, Out is In, Public is Private, Theft is Charity, Evil is Good and it goes on….We go to Jail those Crazy Guys Live the Good Life.
I think the problem The SEC and the DOJ are having with throwing the crooks in jail is everyone is a dirty crook here. The politicians, CONgress, the judges, the banks attorneys, the banksters, Wall Street. the Federal tranch, the Federal Reserve, the Treasury Dept. all completely corrupt. They would all be throwing each other in prison. It would be like a circus. I say good, I haven’t been to a circus in a long time and this would be a great one. They delighted in watching us all struggle and thought it was soo entertaining to watch us struggle and lose everything. Now, let’s bring on our bread and circuses, it is our turn.
Kathryn, Atleast in the hospital they can numb your pain.Yes kids are the ones that suffer the most,but are the ones to bounce back quicker.Should probably take a note from them and kick start us all back to where we can all feel something again.Wish I was still 14 or so and life was still a mystery.But we are where we are and thats all there is to it.I wish you the best and hope you have the luck of the Irish with you.Believe me we are all going to need it.
Wishing you and all the best also. I do have a deep spritual belief that manages to carry me through most bad times. I also believe in the power of prayer. So for you that also believe in that power, prayer hard. For you that don’t believe, I hope no offense is taken!
All of these banksters are starting to look like Jackie Gleason in “Smokey and the bandit” ……. rememer when he walked out of a honkey tonk rolling out an entire roll of toilet paper stuck to his pants. THESE CROOKS ARE LOOKING SHITTIER AND SHITTIER DAY BY DAY!!!!
OK That was really really funny. Love It
Thanks Pamela…hey maybe I can negotiate with BofA and give them the keys to the house for a travel trailer. After all, we do now get that wonderful mandatory counseling/mediation rior to being kicked to the curb. You think they’ll bite? It’s nice to have support and know there are many of us in the same situation. I believe there will be alot more foreclosures to come. Many more than they are now predicting. The utilities in our house tripled in three years. They run us an average of $600 a month. Gas is another subject we should probably be discussing here on 4closurefraud, as that is also being manipulated. My husband took a pay cut and they have made us pay more for our portion of health insurance for 3 straight years. Hell, a bottle of aspirin is 10 bucks. I know what my 3 dogs cost me, I really feel badly for those raising kids now. Many people who have been OK making their mortgage payments will start having more and more problems and you will continue to see the foreclosures rise keeping the country in a constant state of economic decline. It is inevitable. I feel the most sorrow for the children. My husband, dogs and I will make it one way or another. However, much tougher with kids. The amazing thing, though; kids are amazingly resilient.I got out of the corporate scene years ago. If I hadn’t, I would be on the 7th floor of some nice cozy hospital spaced out on thorazene (sp?) making nice wicker baskets. Now that I think of it, I think I might be teetering on the edge. Hey, maybe life on the psyc ward wouldn’t be that bad. LOL
Kathryn in response to your inquiry regarding tents I believe Coleman and Alpine are 2 of the better ones,but let me make a suggestion why not a travel trailer as these are usually more cost efficent and offer most of the comforts of home.Plus you will be stimulating the economy .Really just joking you will not end up in the street.If these people do this to you just know that the rest of us are either already there or will soon be joining you maybe we can all start a travel trailer camp or a tent camp and not be held up for ransom anymore.They are exploiting all of us for thier own personal gain.Actually this tent/trailer idea looks better and better all the time.Imagine no more stress and games in any of our lives we could sit by the fire and have adrink or what ever and not have to answer to the banks for anything .Pure Bliss.
Here is more curious. Long story short. Original mortgage sold to Countrywide from MERS. Then it is sold to BofA. Then we refi. MERS records satisfaction of lien. Few weeks later get letter from Fannie Mae that they now own note, however, were told when refied that it was a Fannie Mae loan then? BofA is lender for refi, however, specific closing instructions to title co. says payoff goes to Countrywide? When, where and how did Countrywide re-enter the picture is something I don’t know nor did I know until I got hold of the refi specific closing instructions. Fannie Mae tells me the note was pooled into the bond market. And what, exactly, is the definition of C O N V O L U T E D ??????
Really & Seriously, why is Madoff behind bars. Honestly, no joke, his lawyer should consider an appeal based on a precedent set by the banks and our government, wherein they have declared ponzi schemes and the defrauding of innocent people legal. It would appear that they are just picking on poor Bernie. How unfair of the government to pick favorites.
By the way, I’m not a real camping kinda gal so I will need to start getting opinions of the best tents on the market for fulltime living. Any info. please pass on.
Hi Katheryn,
I’m considering buying a houseboat…I will use the mortgage payments I have been depositing into my Trust Fund, pay cash for the nice houseboat with jacuzzi & fireplace and only have dock fees to pay which include your water, electric and sewer fees……
or a maybe rent a small A-Frame House in a campground on the River.
Yes, I have been saying that I will only leave my home in a coroners van but our County is so broke because banks aren’t paying Doc recording fees, property taxes & upkeep on foreclosed houses,
I don’t think their budget includes pick up of bodies anymore.
Besides that would be giving up or giving in and I’m no quitter, I have a tiny ray of hope left that my
case, (Conutrywide/BOA) Attorneys Motion to Compel-July 2010-“In camera review of Documents” may finally come alive again.
Must mention, there is a house next door to me Countrywide got back 3 years ago,
was a beautiful waterfront home-wide open now-rotting to hell-everything stolen, AC, appliances, HW heater-even wiring-they tried to Sell, Sale cancelled becaue of no bidders. They never transferred Title-former owners name, still on Tax records, to avoid paying expenses and County Code Enforcement fines.
If I go my little 600 sq. ft. one bedroom “fishin’ shack will just rot along with it.
You did not offend me at all with your reference to prayer-that is what has kept me alive-
4closurefraud.org with plenty of Faith Hope & Prayers….may God help us all.
Catherine
I have started looking for a year round, good quality tent. No running water or indoor potty! I think I might try to negotiate a nice motor home in exchange for the keys to the house. The whole situation is simply deplorable and also unbelievable. The banks have clearly and right in front of our own eyes, permission to break laws and defraud people. I feel like I have slipped into the twilight zone.
My loans are also Countrywide/Bank of America. Please keep us all informed on how it is going. It’s all such as shame but I don’t think we have even neared the end of the foreclosures yet. Hope I’m wrong.
Wishing you success and hope you beat their behinds. P.S. you have a great name…lol
Since most of Countrywide’s Loans were securitized, what does BofA actually hold? The trustees and certificate holders should be “holding” the “bad” loans. Curious…..
@Tim Bryant: I think they are all one giant cabal. Foreign Multinational partners in crime and terrorism so to say. Different faces are put on two create new identities but they are really the same. Some have went into FDIC hiding as “failed banks” and were taken over by a different face, same bank, new name. They are all one big lying sack of shit, just like their loans. They never securitized shit. They never owned shit. The mortgages were FRAUDULENTLY INDUCED. The trusts are also a big unsecured hide out. When the banks want to hide they go to hide in different batcaves. Check out North Star, it is a trust that has many,many failed banks hiding there from my state alone. It clearly states on its webpage that it is not FDIC insured and it is unsecured.. Who are the investors? It is a very deceptive mystery. Something really stinks over here in the good ole U.S.of A.
Hi Tim,
That is exactly what my Attorney has tried to prove for 2 yrs. Since Jan. 2008.
The Judge sent the Servicers 60 day Notice of Lack of Prosecution….June
Because they (Marshall Watson Law Firm) were non-responsive to EVERY motion
including “Motion to Produce” waiting until the last hour of the last deadline day to file an answer.
That firm answered my Discovery Motion with “non-reponsive answers” which is considered
as No Answers by the Judge. Of the 13 discovery questions, they could not even state the amount in arrears, amount due for payoff, current interest rate or late fees…
We then filed Motion to Compel “In Camera” of those documents
they called “Trade Secret “in July or Aug-no response at all since last summer. I’m told they are stalling
because they cannot prove anything……..or even do the math.
Wow I am totally speechless ,first they create the bad loans and then they seperate good from bad.After they created this abysmal mess.What is this good cop ,bad cop theory.SOOOO predatory and useless.Will they just all of a sudden quit creating bad loans,I think not.So everyone will eventually end up with the bad bank as they are just making more fraudulent loans set up to fail right off the get go.Do these people realize they are only making a bad situation worse by doing this.You would think with a bank this big they would have a loss prevention dept. that would tell them how useless and stupid this is.They seem to be exercising little to no common sense.
This is just getting preposterous.
OMG…I have now been officially moved from good to bad. What to do..what to do!