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Tag Archives: Bank of America

Syncora Settles Lawsuit Against Countrywide for $375M

Another Countrywide lawsuit has been finalized, with the announcement that Syncora Guarantee Inc. has settled its claims with the company and its affiliates. Syncora, a subsidiary of Syncora Holdings Ltd., received $375 million from Countrywide to conclude its litigation against the company. In exchange for the payout, Syncora has agreed to release all claims against Countrywide and Bank of America. An official release about the lawsuit noted that Syncora's filing stemmed from insured second-liens.

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B of A Reports $2.5B Net Income in Second Quarter

After recording a loss in the first quarter of the year, Bank of America announced a net income of $2.5 billion, $0.19 per diluted share in the second quarter of this year, according to a press release. The $8.8 billion in net loss in the first quarter was partially due to $18.2 billion charges ├â┬ó├óÔÇÜ┬¼├àÔÇ£for certain mortgage-related items and other select adjustments, including provisions for representations and warranties and goodwill impairment,├â┬ó├óÔÇÜ┬¼├é┬Ø according to the press release. This trend reversed during the second quarter. Bank of America lent out about $107 billion.

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More Downgrades as Moody’s Goes After Several Banks

Count another major downgrade against the global financial community. On Thursday Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Investors Service slashed credit ratings for 15 major financial institutions, including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley, among others. The reason for Moody├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós actions: The biggest banks face too much risk from debt-saddled Europe, earnings volatility, and still-faulty mortgages stateside. The ratings agency grouped the downgraded institutions into three groups. Stocks slid for many of the banks.

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B of A Agrees to Maternity Discrimination Settlement

HUD announced Thursday that Bank of America has agreed to pay $161,180 to settle allegations of maternity-based discrimination. A complaint had been filed by the Fair Housing Council of Orange County against BofA alleging that one of its San Jose branches refused to refinance a woman's mortgage because she was on maternity leave. The Fair Housing Act prohibits discrimination in mortgage lending and real estate-related transactions based on race, color, national origin, religion, sex, family status, or disability. BofA was alleged to be in violation of the provisions protecting sex and family status.

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Settlement Monitor Talks Selection Process for Primary Firm

The Office of Mortgage Settlement Oversight continues to evolve as the monitor, a widely respected banking and housing finance chief, takes on new help from accounting and legal firms. Joseph A. Smith, Jr., onetime Federal Housing Finance Agency director-nominee, now responsible for overseeing servicer compliance under the $25 billion settlement, revealed Monday that BDO USA, LLP, would serve as the Raleigh, North Carolina-based office's eyes and ears. He spoke with MReport about the firm Wednesday.

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Nationstar to Acquire $10.4B Servicing Portfolio From BofA

Nationstar Mortgage LLC, a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc., announced Tuesday that it reached a deal with Bank of America to acquire residential mortgage servicing rights for a portfolio with $10.4 billion in unpaid principal balance. The entire portfolio is backed by the GSEs. The deal was struck with a co-investment from New York-based Newcastle Investment Corp. Newcastle├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós $44 million contribution toward the purchase price of the portfolio comes with rights.

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Settlement Monitor Selects Primary Firm to Oversee Compliance

The monitor responsible for reviewing $25 billion in settlement funds announced Monday that his office has selected BDO USA, LLP, to serve as the primary professional firm needed to oversee the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós servicers. The firm will play a critical role in the oversight process as Joseph A. Smith, Jr., the former North Carolina banking commissioner selected by 49 state attorneys general to head up the settlement, begins the footwork necessary to fulfill terms and conditions under the landmark deal.

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FDIC Reportedly Files Suit Against Several Large Banks

The FDIC reportedly filed suit Friday against a number of large bank holding companies, including Bank of America, Citigroup, Deutsche Bank, and JPMorgan Chase. Media outlets reported that the FDIC seeks to recoup some $92 million for two banks that failed in 2009. The suit alleges that banks like the big four are responsible for misrepresenting mortgage-backed securities to Citizens National Bank and Strategic Capital Bank. Speaking with MReport, FDIC spokesperson David Barr declined to comment on the story. Bank of America and Citigroup reportedly appear as the only defendants cited in all three cases.

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Stocks Swell for Big Four as Construction Spending Rises

Shares swelled for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós four largest lenders Tuesday, with analysts crediting a rise in construction spending over March for a climb by the stock market to levels not seen in four years. The Dow Jones Industrial Average cleared an important psychological hurdle by rising 65 points to 13,279, the highest in four years. Media outlets and analysts attributed the boon to a leap ahead in confidence for the Chinese and U.S. economies, with a slight rise in construction spending over March responsible for the latter. Construction spending arrived at $171.2 billion.

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