Bank of America Said to Offer MBIA Settlement Pennies on the Dollar in Defective-Mortgage Suit
Bank of America Corp. (BAC), the biggest U.S. bank, has made a preliminary offer to bond insurer MBIA Inc. (MBI) aimed at settling a legal dispute tied to defective mortgages, according to two people briefed on the discussions.
The two companies remain split on how much the Charlotte, North Carolina-based bank would have to pay to resolve the disagreement, said the people, who declined to be identified because the talks are private. Bill Halldin, a spokesman for Bank of America, and Kevin Brown of Armonk, New York-based MBIA declined to comment.
The lawsuit is among several between Bank of America and MBIA, which guaranteed Wall Street’s toxic mortgage debt. Bank of America bought Countrywide Financial Corp. in 2008 and Merrill Lynch & Co. in 2009, two of the largest participants in the market for subprime home mortgages.
More here…
Again, nothing about who these “defective mortgages” were sold to…
You can sue other manufacturers for defective products, why not the banks?
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4closureFraud.org
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With loans line the “America’s Wholesale Lender Corporation” ones, the loan was a piece of shit regardless of the qualification of the borrower. No amount of due diligence by ethical appraisers or rigorous underwriting would make ANY of these loans valid.
REASON: That NAMED LENDER did NOT EXIST at the time the loans were written. Yes, you will find a corporation by that name NOW, but it was registered in NY on 12-16-2008. The pieces of crap loans were written at least as early as 2002 and at least until 2007. Court cases have already determined that AWL can not foreclose in it’s own name. See Pagano v America’s Wholesale Lender.
SOME mortgages were written where CountryWide shows the lender as “CountryWide D/B/A America’s Wholesale Lender”. Note that the “AWL” referenced there is NOT referred to as a CORPORATION. The ‘AWL’ loans I am addressing are the ones that completely FAIL to name an EXISTING REAL CORPORATION as the LENDER.
With the identification of a non-existent corporation as the supposed LENDER, ‘perfection’ never occurred with these loans.
They are a fraud from the get-go and there is NO legal way for these mortgages to be transferred into the REMICS. CountryWide or BofA or Litton or other fraudsters will show an assignment to a REMIC only as partof the foreclosure processing.
Certain Congressional staffers are becoming aware of this type of problem in the REMIC Trusts.
WELL JASON, HE”S CERATINLY WORKING ON IT. WHAT”S WITH ALL OF THIS “SETTLEMENT” CRAP?
DON’T GIVE THEM ANY MORE LENIENCY. THEY SURE AS HELL HAVEN”T GIVEN ANY OF US ANY.
Thank God so many of you are still paying attention, who knows maybe sometime soon someone will make it right, although I don’t see how. So much heart and energy for naught.
Holy Bible (King James Version): Jesus Christ said to be wiping out Bank of oAmerica with no settlement – only punishment with damages paid to victims and he bank no longer in business – waiting on the LORD
Psalm 37:10
THANKS BE TO GOD!!!!
This thing is like a boil, sooner or later it’s going to pop!
Equity Free’s commentary was full of “shit”,
SPOT ON!
Fry, B of A.
The private mortgage insurance industry was created in 1957and worked well ,through the savings & loan
scam , as they were insuring the borrower who could not come up with the 20% down payment .. They under
wrote the loan application because they were the first to pay when a default occurred and it was their money on the line. Like Fannie & Freddie there are requirements, like income verification, employment, things that the Wall Street CDO creators ignored because they were not taking the risk with their money . They knew their shit was shit and passed the shit on to buyers ,who thought they were buying good shit . ( AAA ) .
They than said screw the mortgage insurers and wrote the 20% down 2nd mortgage and did away with a second underwriter and passed the shit on .
They have not paid the mortgage insurers back for payments made,that were in courts .
The insurers found more & more breaches of loan requirements .
Fannie & Freddie found it rampant ,and in 2010 in light of their shit stinking around the globe, a audit found 15% were fraudulent ..Some CEO said !5% defective rate that’s real good .
That’s in your face bold cocky bullshit