Bank Of America To Buy Back Bad Loans From Fannie,Freddie

[The Straight Story]

Bank Of America To Buy Back Bad Loans From Fannie,Freddie

NEW YORK (Dow Jones)--Bank of America Corp. (BAC) expects to take a provision of about $3 billion in the fourth quarter to buy back bad loans from Fannie Mae (FNMA) and Freddie Mac (FMCC) that were issued by its troubled Countrywide Financial unit.

The move represents the latest effort by the Charlotte, N.C.-based banking giant, which acquired mortgage originator Countrywide in 2008, to respond to the housing crisis. Countrywide's mortgages turned into some of the worst mortgages issued during the crisis and, ever since Bank of America bought the lender, the bank has had to handle growing loan losses.

Fannie and Freddie have been stepping up demands that lenders take back defaulted loans when they find that the mortgages didn't conform to their lending guidelines. The two giant mortgage buyers have been operating under federal conservatorship since September 2008. Keeping them afloat has cost taxpayers about $134 billion so far.

Last week, Fannie reached a $462 million settlement with Ally Financial Inc. to cover potential repurchases on $292 billion in mortgages.

Taken together, the Ally Financial and Bank of America settlements will result in a recovery of $3.3 for taxpayers, the Federal Housing Finance Agency said.

"While these agreements are an important step, (Fannie and Freddie) have other outstanding claims across a range of counterparties and they are being pursued," said Edward DeMarco, acting director of the housing agency, in a statement.

http://online.wsj.com/article/BT-CO-20110103-705110.html

[naaman fletcher]

1. This is all part of the scam.

The real amount that bank of america should be buying back is many times higher than this. This is not a recovery for taxpayers. The rest of the bad loans will be paid for by the taxpayers.

[Safetykitten]

2. That's all? 3 billion? That's hysterical.

[stevenleser]

3. Interesting. Wonder what BoA will do with those mortgages

Hopefully they just write them off and give the folks the deed to the properties?

I know, not gonna happen. But I can wish/hope, right?

[FreakinDJ]

4. But yet No One goes to jail for writing Bogus Loan Papers

and Mortgage Securities

[mrdmk]

8. You said it! Deregulation does not mean no regulation

or did I miss something in the translation?

[notesdev]

5. What a farce

The public treasury is on the hook for both these clown organizations, both recipients of bailouts of staggering size.

[elehhhhna]

6. preempting assange's next revelatory release, no doubt.

[EnviroBat]

7. More mortgages for the BoA foreclosure machine.

I wrestled my mortgage away from those asshole last year. Probably one of the better decisions I've made in my life.