More mortgage investors may soon join the fight to force banks to buy back bad loans, according to a Reuters story Thursday morning. According to the article, which cites an anonymous source, more than 50 large mortgage investors -- including Paulson, MetLife, Prudential and the Federal Reserve Bank of New York, met with securities attorneys David Grais and Talcott Franklin on Wednesday.
The news comes after another group of investors last week sent Bank of America (BAC) a letter suggesting that a mortgage-based securities lawsuit may be on the way. Those investors bought securities related to Countrywide, now owned by Bank of America. And Fannie Mae and Freddie Mac has requested billions in additional loan buybacks -- $18 billion from Bank of America alone -- after forcing banks to take back more than $4 billion in bad loans last year.
Banks' mistakes in foreclosure paperwork has fueled the effort to recoup mortgage-investors' losses from what they say were misrepresented loans. Meanwhile, banks are, understandably, reluctant to pay.
Can Mortgage Investors Force Banks to Buy Back Bad Loans?
Posted 4:00AM 10/28/10 Economy, Investing, Bank of America, Real Estate
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To Competition Dog, Perhaps you might want to use that thing attached to your neck to learn how to spell properly. It's LOOSE not lose. Just keep in mind that "lose" controls actually came to be prior to the Bush administration, as Glass-Steagall was repealed during Clinton's administration.
October 28 2010 at 2:22 PM Report abuse Permalink rate up rate down ReplyThe banks are reluctant to pay? These crooks sell bad securities like Milken selling bad junk bonds - and now the banks are balking?
October 28 2010 at 1:43 PM Report abuse Permalink rate up rate down ReplyBank of America won't pay back the Investors on bad loans ... how funny. I won't pay back Bank of America for the same reason.
October 28 2010 at 12:15 PM Report abuse Permalink +1 rate up rate down ReplyThat is funny I am doing the same. They can't tell me who I am paying so I won't pay them. Them being, Bank of America. Hell I shouldn't have paid Countrywide either. Funny how Bank of America rushed in to "SAVE" Countrywide. They thought they had a formula to make billions on this failed business. I wonder if this mental midget of a genius who came up with this formula is still working for Bank of America?
November 07 2010 at 10:07 AM Report abuse Permalink rate up rate down ReplyYes ,Yes do it they deserve it
October 28 2010 at 6:40 AM Report abuse Permalink rate up rate down Reply
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