BofA Chief Says More Foreclosures Inevitable as Repeated Defaults Top 50%

Bank of America Corp. (BAC) Chief Executive Officer Brian T. Moynihan said efforts to prevent foreclosures are failing frequently, with more than half of borrowers in some categories defaulting a second time.

“We’re reaching a point where some customers will be dealing with the reality that despite the myriad programs and the best efforts of everyone in this room, and of our teammates working with these customers, foreclosure may be unavoidable,” Moynihan said today during a speech to state attorneys general in Charlotte, North Carolina.

Bank of America and other mortgage servicers are being probed by a task force of 50 state attorneys general over the way they foreclosed on overdue homeowners. Regulators have suggested a $20 billion penalty for the industry and principal reductions for some owners whose debts are greater than the value of their homes.

You can check out the rest of the Bloomberg report here…

Full text of Brian T. Moynihan’s speech can be read here…

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