Faulty Loans Top $72 Billion as Banks Seek Deal With Regulators: Mortgages
Costs from faulty mortgages and shoddy foreclosures have topped $72 billion at the biggest U.S. banks as they near a settlement of a 50-state probe into the industry’s practices.
Wells Fargo & Co., Bank of America Corp., Citigroup Inc. (C), JPMorgan Chase & Co. (JPM) and Ally Financial Inc., the five largest home lenders during the real estate boom, tallied at least $6.78 billion in new costs tied to mortgages during the second half of 2011, according to data compiled by Bloomberg. Bank of America, ranked second among U.S. banks by assets, contributes $41.8 billion of the overall total.
The mounting costs are pushing lenders and regulators to resolve investigations and lawsuits over faulty home lending, including a 50-state review of foreclosures. The wrangling over the status of old loans has made some banks more reluctant to make new ones, even as Federal Reserve Chairman Ben S. Bernanke appeals for action to increase lending and fix the U.S. housing market because it’s a drag on the economic recovery.
“It’s a colossal failure of basic banking,” said David Knutson, a credit analyst in Chicago with Legal & General Investment Management, a holder of bonds in some of the lenders involved. “It’s surprised everyone in terms of persistence and longevity and I think it will continue to surprise.”
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If this figure was provided by the banksters – it is indeed a lie.
It says at the end of this article that FL hasn’t yet signed on? Is that true? Maybe they meant Delaware instead and put Fl on by mistake. I had the impression our AG was in favor of the Settlement.?
72 billion is another lie. It doesn’t even come close to the real figure. Why doesn’t someone force a real accounting and tell the truth.
St Elmo .no offense but you…must be an investor. Work for OCWEN ? BOA ? Penny Mac ???
Shared Appreciation is nothing more than serfdom…Homeowner (serf) works the land and banks(lords) get 50% of the proceeds…..NOT !! I vent thanks for staying on top of these creeps.
For those who are upside down, set mortgages at todays prevaling interest mortgager rates and at 90% of todays appraised value, subject to sharing at 50%/50% any appreciation for up to 7 years with the lender, if they can determine that they own and hold the mortgage and note. Let the banks treat these resets/modifications of the mortgage as a right offs. Additionally, all homes in default if vacant must be placed for sale in the market and investors discouraged from buying SFRs to stimulate owner occupany and afforable values for todays depressed economic conditions. Most 2nds go bye bye, unless market regains values. 7 years statute of limitations.
Screw them..! They don’t own shit! They are all traitors, liars and criminal imposters…!
OFF WITH THEIR HEADS!
We The People now know the truth about their evil plans for mankind..! Now they will meet the fury of Gods wrath!
Well said Vent. We are talking about criminals who need prosecution after YEARS of fraud and damage to the American people – we don’t do a ‘fix it , adjust it for some people or a do over’. Smash TBTF now, and restore the homes with full restitution to the victims.
I’m with Ivent. Clawback ALL Executive pay, sell off all their junk, if it was an illegalforeclosure then GIVE the house back, and then pike the bast..ds (hanging & guillotein are to quick) So far I know I’ve surely been shown no mercy from the Lender OR the Court… They had their choice and I’m paying for it… I say treat them with the same apathy and disrequard they’ve set the example of. Turnabout is afterall only fair play.
So true John R….THE FOREIGN CRIMINAL IMPOSTERS, THE FED and the TRAITOR POLITICIANS must be held accountable for their evil, monolitical conspiracy to steal everything they don’t own and turn the people into microchipped, robots…indentured servants to the massive UNSUSTAINABLE $1.2 QUADRILLION IN DERIVATIVES FRAUD CREATED BY THE FED AND THEIR FINANCIAL PERPS….FROM FRAUD AND BIG LIES AND DECEPTIONS…ALL ALLOWED BY THE TRAITOR POLITICIANS…OFF WITH THEIR HEADS..! THEY ARE NO MORE THAN MAFIA HOODS..!