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BOA agrees to record $17bn settlement

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Mortgage Professional America | 20 Aug 2014, 02:11 PM Agree 0
Bank of America has reached a record $17 billion settlement with the government over sales of shoddy mortgage-backed securities during the run-up to the financial meltdown
  • Sbharkness | | 20 Aug 2014, 03:21 PM Agree 0
    I suppose Alex Sanchez would say that this is also the result of Mortgage Brokers being a shadow industry that was not well regulated like the banks. Strange....I have never heard about a mortgage brokerage having to pay and settlements or doing anything egregious. These guys planned this from the beginning, made out like bandits not once but twice under the tax paper bail out. Whats worse is they have become even further entrenched thanks to the CFPB according to the Congressmen who have penned bills that would do away with the rogue agency that is answerable to no one, and will make sure that they protect the mega banks like B of A. Seventeen billion to a bank this size is a proverbial slap on the wrist. There was a time when they would of been broken up into smaller more manageable institutions that actually served the communities instead of figuring out different ways to extract wealth from the tax payers. So they will have a one time write off on the share prices, but they will make it back and then some. Thomas Jefferson warned us about banks like these. Andrew Jackson on his death bed said his most proud accomplishment was he beat the central bankers and routed the den of vipers and thieves.
  • William Matz | | 20 Aug 2014, 03:42 PM Agree 0
    What is interesting is that BofA is admitting the MBS misrepresentations. That would seem to open the floodgates for mosre investor lawsuits, which have been mushrooming lately. The big question remains unanswered: Why did BofA go ahead w/ CW purchase after the AG lawsuit was known?
  • Nick | | 20 Aug 2014, 06:33 PM Agree 0
    Now you are as bad as Mr. Sanchez , The fact that B of A agrees to the fine does not mean they directly originated those mortgage , in fact Countrywide Wholesale is probably responsible for half those mortgages that where done through brokers
  • Better B Ware | | 20 Aug 2014, 07:18 PM Agree 0
    It's always the Broker's fault, the banks defined what mortgages and pushed the mortgages it wanted. Broker's with morals had to fight a borrower not to go with one of these mortgages that the realtors loved so that they could sell them more properties. Stop blaming the Broker's for the Lender's greed.
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