Tag Archives: Bank of America
DOJ finally confirms record-setting $16.65B settlement with BofA
by Chris Morran, Consumerist
The settlement coming out of BofA’s involvement in the housing market’s collapse exceeds last year’s deal with JPMorgan Chase as the largest in U.S. history. Consumers will see $7 billion in relief, including principal reduction loan modifications; new loans to credit-worthy borrowers struggling to get a loan; assistance to communities recovering from the financial crisis; and financing for affordable rental housing. The settlement also required BofA to concede that it originated risky mortgage loans and made misrepresentations about the quality of those loans. Read More ›
BofA ordered to pay $1.3 billion over Countrywide lending program
by E. Scott Reckard, Los Angeles Times
A New York judge ordered Bank of America to pay nearly $1.3 billion in penalties in a civil fraud case involving a mortgage program that Countrywide had nicknamed “the hustle,” which fast-tracked the processing of mortgage applications. After a monthlong trial, a jury decided last fall that BofA and Countrywide were liable for selling thousands of bad loans to Fannie Mae and Freddie Mac. The lending program fast-tracked mortgage applications from August 2007 through May 2008. Shortly thereafter, Bank of America bought Countrywide, the nation’s largest home lender at the time. Read More ›
With Citigroup paying up, will feds’ attention now turn to BofA?
by E. Scott Reckard, Jim Puzzanghera, The Los Angeles Times
With Citigroup Inc. agreeing to pay $7 billion for issuing toxic mortgage securities, the Justice Department now turns to settling its case against what analysts call the biggest mortgage miscreant of all: Bank of America Corp. In the Citi deal, California will be among several states that will share in the settlement. Citi will pay California $102.7 million to offset losses at its public pension funds, primarily the California Public Employees’ Retirement System. California also is guaranteed at least $90 million in consumer relief, the most of any state. Read More ›