Monday
Jan102011
UH OH!: Bank Of America Could Be Forced To Pay $20 Billion To Bond Insurers For Mortgage Loan Put-Backs
Editor's Note: Another in our series of articles from late 2010 that we are reposting in the wake of Friday's landmark foreclosure ruling from the Mass. Supreme Court.
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Dear Brian Moynihan:
You owe us between $10-20 billion for MBS fraud. Pay up, securitizing thief.
Certified letter to Bank of America CEO Brian Moynihan from the Association of Financial Guaranty Insurers, which is the industry group representing the monolines in their suit against BAC. For more detail on this story, please see:
- Forget Foreclosures -- David Faber Says Banks Face HUGE Liability For Fraud In 'Mortgage Loan Pools'
- and
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Chris Whalen nails it in this 3-minute clip...
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Reader Comments (9)
"Institutional Holders of Countrywide-Issued RMBS Issue Notice of Non-Performance Identifying Alleged Failures by Master Servicer to Perform Covenants and Agreements in More Than $47 Billion of Countrywide-Issued RMBS"
http://www.prnewswire.com/news-releases/institutional-holders-of-countrywide-issued-rmbs-issue-notice-of-non-performance-identifying-alleged-failures-by-master-servicer-to-perform-covenants-and-agreements-in-more-than-47-billion-of-countrywide-issued-rmbs-105221854.html
Bank of America said Monday that it plans to resume seizing more than 100,000 homes in 23 states next week. It said it has a legal right to foreclose despite accusations that documents used in the process were flawed.
Other major lenders have yet to say whether they will follow suit and resume foreclosures in the 23 states that require a judge's approval. But analysts said they expect the move by the nation's biggest bank will mean other lenders will proceed with a wave of foreclosures that have depressed the housing market.
http://apnews.excite.com/article/20101018/D9IUDE703.html
http://www.cnbc.com/id/39717269
http://www.calculatedriskblog.com/2010/10/feds-lockhart-qe2-is-insurance-policy.html
http://www.market-ticker.org/akcs-www?post=169575
The only analysis he gives really is to say yep, uh huh. told ya.
i'll keep looking.
http://subprimeshakeout.blogspot.com/2010/10/new-york-judge-tosses-greenwich-suit.html
The group in the link from Market Ticker appears to be a different group altogether, but they also appear to be following the rules in the PSA to a tee. Notice they're not suing yet, but filing a written notice to Countrywide as per the PSA. CW then has 60 days to "remedy" the situation, but i'm not sure exactly what that entails other than cash payment.
http://www.youtube.com/watch?v=NT0xRQwKpvY
Advance to 3:53 and see how well Ennio Morricone's score works for the action shown.
More importantly, at 5:38, notice the anticipation of Josey Wales' final confrontation with Red Legs in Clint Eastwood's 1976 classic.
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Chris Whalen sent some private commentary on this dismissal...said it was completely acceptable and the judge did the right thing by following the law strictly and denying the claim...another thing i like about whalen..his honesty...he knows Countrywide committed fraud, but is fair about the merits of each case...