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Tag Archives: Bank of America

FHFA Faulted for Role in Bad Settlements for GSEs

Freddie

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.

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Rumored Europe Relief Sends Up Shares for Lenders

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.

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B of A Sells $880M Commercial Real-Estate Portfolio

Bank of America green-lighted another restructuring move Friday, with news breaking that the mortgage giant signed off on an $880-million selloff in commercial real-estate loans. Multiple news reports held that the portfolio, worth about $1 billion to a cluster of investors, will benefit from a bevy of discounts. Who benefits? According to multiple news outlets, a venture created by Canyon Capital Realty Advisors LLC, Invesco Ltd., and Square Mile Capital Management LLC will sop up the loans.

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Dodd-Frank Cheered, Jeered, as Moody’s Downgrades Big Banks

In a surprise move, Moody's Investors Service slashed credit ratings for mortgage giants Bank of America, Citigroup, and Wells Fargo Wednesday afternoon, citing concerns that the federal government may not rush to pick up their remains and bail out the institutions in another liquidity crisis. Critics and advocates of the Dodd-Frank Act used the downgrades to alternately justify the legislation or undermine it in the national square. The downgrades arrive amid a slew of bad times for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest mortgage lenders.

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Feds Seen as Able to Weather Crisis if Greece Defaults

With fears on the rise about a Greek default, stocks for U.S. companies and lenders fell around midday Monday. Speaking with MReport, federal regulatory agencies downplayed the fears despite quarterly numbers that found an expansion in lending volume between wobbly euro zone and U.S. financial institutions over the first quarter. New worries about a spreading debt contagion arose over the weekend when European Union officials reached an impasse in bailout talks.

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Banks Lose Big Over Bad MBS, Numerous Suits

Even as the good news emerged that fewer banks are failing countrywide, Bloomberg News found that the nation's biggest lenders have lost some $65.7 billion in bad mortgage-backed securities, with billions in the red. A number of suits by mortgage lenders, one against the other, plus a barrage of action to recover losses for Fannie Mae and Freddie Mac suggest more losses may be in store for U.S. financial institutions. Market watchers disagree over whether culpability is needed in lieu of the bad economy.

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Latest Suit Adds to MBS Woes for JPMorgan Chase

In another twist for the nation's largest mortgage lenders, Wells Fargo upped the ante against JPMorgan Chase & Co. by filing a suit in a Delaware court to order the latter to buy back over $558 million in bad mortgage-backed securities. Multiple news outlets offered up the latest tizzy Thursday, with Wells escalating the case after JPMorgan refused to budge on the repurchases. The loans stem from the Bear Stearns Mortgage Funding Trust 2007-AR2, otherwise known as the EMC unit, which JPMorgan acquired in 2008.

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Stocks for Mortgage Banks Fall on Euro Zone Fears

The surprise resignation of a key official at the European Central Bank sent stocks and shares plunging in markets across Europe and overseas, furthering fears about a global economic slowdown and the potential for sovereign defaults across the European Union. Sagging stocks doubled up woes for Bank of America, whose CEO, Brian Moynihan, announced plans for some 40,000 layoffs as the mortgage giant reassesses its capital position in the market and undertakes restructuring efforts, according to multiple news reports.

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Markets, Analysts React to the FHFA Suits

Partly in response to suits brought by the Federal Housing Finance Agency Friday, stocks for a number of the 17 companies-turned-defendants sank Tuesday, with Deutsche Bank leading the way down midday. Market watchers across the country offered up their reactions, with some portending considerable fallout for the economy and others waving away notions that a settlement by the banks would weaken the housing recovery. Deutsche, Barclays, Morgan Stanley, and others all saw their shares decline Tuesday midday.

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FHFA Sues 17 Companies Over MBS Losses

Acting on behalf of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency filed suits Friday against 17 of the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest banks and firms to recover losses stemming from mortgage-backed securities. At stake: tens of billions of dollars in assets, according to market watchers. Multiple news outlets fixed losses in mortgage-backed securities for the GSEs at $41 billion. The federal agency announced that it filed the suits on behalf of the GSEs in a New York federal court.

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