Tag Archives: Bank of America

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.

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.

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.

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.

Morrison & Foerster has announced a new partner in the firm's financial services group. The company has added Thomas J. Noto to the division, which specializes in finance-related regulatory, litigation, and transactional practices for Morrison & Foerster.

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.

Parties to the landmark mortgage servicing settlement in February appointed one man to oversee $25 billion in compliance. In an interview with DS News, our sister publication, Joseph A. Smith, onetime banking commissioner for North Carolina and ex-nominee for the Federal Housing Finance Agency, lays out the role he envisions playing as he monitors funds for homeowners, states, and the federal government. The settlement monitor speaks with an understated tone about his stewardship of the historic settlement, which 49 state attorneys general and federal officials completed in February.

First-quarter results for Bank of America recently showed that the company continues to shed its role in the mortgage market, with the giant reporting year-over-year declines to $1.6 trillion for home loan portfolios for investors. The financial institution said that mortgage portfolios serviced for investors also fell to $1.3 trillion in the first quarter from $1.4 trillion last year. The balance for mortgage servicing rights climbed to $7.6 billion from $7.4 billion.

JPMorgan Chase has finalized a deal that puts an end to mortgage fraud allegations that created critical headlines for the bank. The company announced on Tuesday that it has reached a settlement in a lawsuit that accused Chase of refinancing fraud against military veterans and taxpayers. In total, Chase will pay the federal government $45 million to conclude the legal issue, which sought to bring the bank to justice for hiding illegal fees within home mortgage refinancing transactions for veterans.

The federal government leveled charges against Bank of America Monday that the mortgage company wrongfully discriminated against three borrowers with disabilities. HUD filed suit under the False Claims Act, alleging that Bank of America requested proof of disability from borrowers and Social Security income information after denying their qualifications for mortgage loans. In a sign of the growing authority for working groups, HUD said that it would hand off the investigation to the Justice Department and Federal Financial Fraud Enforcement Task Force, which will assign it to a group.