B OF A foreclosure COSTS grossly DISTORTED **New News** Bank of America: Foreclosure costs 'grossly distorted 16-Oct-10 08:37 am Bank of America: Foreclosure costs 'grossly distorted'
Bank exec: Reviews show 'basis for past foreclosure decisions is accurate;' fewer than 30,000 sales delayed.
By David Mildenberg Bloomberg News Posted: Saturday, Oct. 16, 2010 Bank of America Corp.'s head of home lending said outside estimates of costs stemming from delays in foreclosures are "grossly distorted."
Reviews of foreclosures will delay fewer than 30,000 sales, said Barbara Desoer, president of Bank of America's home lending and insurance unit. Desoer didn't specify which estimates she believes are imprecise. The Charlotte-based bank will rework 102,000 pending foreclosure affidavits in 23 states and stands by the accuracy of its procedures, she said.
Bank of America shares declined about 9 percent this week to their lowest level in more than a year, amid growing scrutiny of foreclosure practices and speculation that investors may force lenders to buy back faulty loans. Bank of America, the country's biggest bank by assets, said last week it would stop foreclosure sales nationally pending a review of its practices over the next few weeks.
Federal banking regulators and a group assembled by attorneys general from all 50 states are investigating whether employees of lenders including Ally Financial's GMAC Mortgage, JPMorgan Chase & Co. and Bank of America have falsified documents used in foreclosure proceedings.
"We believe that our assessment shows the basis for past foreclosure decisions is accurate," Desoer said in an interview Friday. "The type of borrower in that 30,000 is somebody who hasn't made a payment in an extended period of time."
The bank has hired independent companies to study its loan documents and processes, Desoer said, declining to elaborate. Because the bank is scheduled to report earnings next week, she said she couldn't provide more details on costs from foreclosure delays.
"We are pulling 102,000 foreclosure affidavits that we will rework and get reinserted so that the judgments can take place," she said. "We wanted to give all of our customers confidence that they are being treated fairly."
Delays tied to the probes may cost U.S. lenders $2 billion for every month, said Paul Miller, an analyst at FBR Capital Markets in Arlington, Va. He estimated the cost of extending foreclosures is $1,000 monthly for each property in the pipeline.
About 195,000 borrowers at Bank of America haven't made a mortgage payment in more than two years, Desoer said, which she attributed to prolonged economic difficulties and high unemployment. More than 56,000 of those borrowers have already vacated their homes pending final foreclosure action, she said.
Bank of America, which handles billing and collection for 1.4 million home loans, is also confident that industry practices in transferring home loans to securitization trusts are valid, Desoer said, citing comments from the bank's outside law firms and the American Securitization Forum, whose members include banks, investors and ratings firms.
Reports of defective documents have raised concerns that courts will be jammed with suits contesting property rights because procedural mistakes cloud titles establishing ownership.
"I'm not sure there are any lost notes," she said, referring to the promissory notes that entitle repayment of a mortgage. Attorneys seeking to help borrowers avoid foreclosure have said banks have violated federal and state laws by re-creating notes when they can't locate the original documents.
< Previous Message | Next Message > View: Simple | Summary | Expanded As: Threaded | Msg List Page 1 of about 1 First | < Prev | Next > | Last Messages in TopicMinimum rating: 5 stars 4 stars 3 stars 2 stars + unrated 1 star + unrated What's this? Subject Author Rating Time of Post (ET) **New News** Bank of America: Foreclosure costs 'grossl... dontchya@ro... (1 Rating) 16-Oct-10 08:37 am Re: **New News** Bank of America: Foreclosure costs '... Wow. I figured Execs would beging to come out and ... howuudoinba... (1 Rating) 42 minutes ago Re: **New News** Bank of America: Foreclosure costs... This is more like the Bear Stearns CEO saying... johngaltspk... Rate it 36 minutes ago Re: **New News** Bank of America: Foreclosure cos... That can't happen. (IMHO) Here's why, B... dontchya@ro... Rate it 3 minutes ago View: Simple | Summary | Expanded As: Threaded | Msg List Page 1 of about 1 First | < Prev | Next > | Last < Newer Topic | Older Topic > Get Message Board for: ADVERTISEMENT
Bank of America Corporation (BAC)
On Oct 15: 11.98 0.62 (4.92%) Enter Symbol(s): e.g. YHOO, ^DJI Symbol Lookup Get streaming real-time quotes - Free Trial Quote data delayed 15 minutes for Nasdaq, NYSE and Amex. For delay times on other exchanges see exchange table. Sponsored Links Bank of America® - Setting Opportunity In Motion To Help Communities & The Economy www.BankofAmerica.com
Bank Foreclosure Listings - View Bank Foreclosure Listings. Bank Foreclosures Up To 50% Off. www.BankForeclosuresListing.com
nyc bank foreclosure - Learn about local Bank Foreclosures in your area get a free list now. www.Bank-Foreclosures.org
Pay Your Bank of America Car Loan Today - Pay Your Card Loan & Enjoy The Benefits Of Credit & Grace Period. www.ChargeSmart.com
Market Data 
Markets 
AI
