Tag Archives: Bank of America

A Bank of America case, two attorneys, and state legislation that made mortgage fraud felonious helped complete the MReport mortgage fraud blotter Friday. MReport sourced two stories from multiple news outlets, which found Bank of America gaining the upper hand in a fraud-related suit and two attorneys alternately disbarred and charged for their roles in scamming lenders and homeowners. Also: A new state law makes mortgage fraud a felony in Michigan.

Continuing its legal wrangling with American International Group, Inc., Bank of America Corp. has filed a motion to dismiss Quinn Emanuel Urquhart & Sullivan as the company's counsel for AIG's $10 billion lawsuit against the financial institution. In its move to disqualify the firm, BAC cited conflict of interest due to partner Marc Becker's previous involvement with the bank's chosen law firm, Munger, Tolles & Olson.

While it shreds other banking assets, MetLife may soon sell the share of mortgage originations it owns in the marketplace, marking another major selloff for the life insurer as federal regulators advance new rules and compliance measures for lenders. A MetLife spokesperson tells MReport that the life insurer will continue to originate reverse mortgages as it looks for a buyer for the MetLife Home Loans division. The move follows a decision by Bank of America to shut down its correspondent lending unit.

Stocks and shares for mortgage lenders and homebuilding companies got swept into a market updraft following news reports that major European economies had agreed to bail out their Mediterranean counterparts. Several weeks of speculation trail the news, with investors fleeing, then returning to shares and stocks on wobbly notions that Europe├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós two biggest economies, France and Germany, will pull debt-ridden laggards Greece, Italy, and potentially others away from a default scenario.

The U.S. economy bucked low expectations Friday with news that it added over 100,000 jobs over September, masking other figures that continued to confirm the rising appeal of rental properties alongside a decline in homeownership. Nonfarm payroll employment tacked on 137,000 new faces in the private sector, alongside 103,000 for the nonfarm jobs payroll overall ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a solid forward step in lieu of pale figures from August, which saw the number of lost jobs eclipsing new ones.

In yet another blow to major mortgage lenders, two brokers unveiled suits Monday against a string of companies alleging the defendants bilked veterans out of millions by hiding illegal fees under other charges for their refinance loans. Quickly emerging as a hot-button topic inside the Beltway, with some pointing fingers at federal agencies, the suit joins a pack of other litigation on the way for big banks. The matter involves the Interest Rate Reduction Refinancing Loans program for veterans.

An inconclusive search for a buyer will lead Bank of America to shutter the mortgage correspondent unit it had originally hoped to sell. The move means the mortgage giant will wipe its hands of the correspondent business by yearend, with a series of transitions in store for the 1,200 or so employees currently on the payroll. It also tracks a broader strategy deployed by the bank to trim billions in expenses, shore up liquidity, and fend off suits over mortgage-backed securities from federal agencies.

Bank of America Corp. will continue to be under investigation, following a recent filing that alleges the big bank failed to properly inform investors as to risk factors associated with a pending lawsuit from American International Group. Hagens Berman announced that it will advance its look into BAC's investor dealings surrounding the bank's legal issues with AIG. BAC shares dropped significantly in the wake of the AIG filing, and it's estimated that the full damages equate to around 20 percent per share.

The Federal Housing Finance Agency cut corners in the analysis it deployed to review and accept a $1.35-billion repurchase settlement from Bank of America over mortgage-backed securities for Freddie Mac, effectively ensuring that losses for the GSE would continue, according to a report released Tuesday by the agency's inspector general. The report concerns two buyback agreements between the mortgage giant and GSEs last year, with profit margins totaling $2.87 billion for the deal.

After a drought for good news, markets and mortgage lenders found reason to celebrate Monday with a late-day flood by investors to their stocks. Confidence-boosting measures by government officials led the charge by investors to lenders like Bank of America and JPMorgan Chase, with central bankers in Europe mustering up an aid package for debt-ridden countries.