So if this covered 716,000 different mortgages and the average is $200,000 per mortgage, that equates to around $143 Billion in mortgages on which there are charges of fraud, breach of underwriting duties, buy backs etc. The settlement of $404 million is a joke. It is only about $500 per mortgage. The question is how these settlements effect the ownership of the loan, or, as admitted in some appellate oral arguments by the bank lawyers, whether the owner of the loan can ever be known.
If the owner can’t be known, are we really saying that the borrower still owes the money on the fictitious debt that was described in ether note and mortgage? We have law that covers this. If he the debt was not adequately represented at closing on he the note and mortgage and note, then we can agree that a debt exists, but it not to any of the parties in he the existing paper train. Why should borrowers have the burden of proof on establishing the most basic elements of a claim to collect or a claim of foreclosure using a mortgage that secured a note that describes a debt that either never occurred or which has long since been satisfied.
While this is a complete sell-out by a scared clueless government, it might be helpful if we got the claims and the settlement documents and perhaps anything else that could be obtained by a freedom of information act request.
I take the lawsuits filed by the government agency to be a finding of fact by the government agency. Whether the bank disclaims any admissions, the findings of fact by an agency are presumptively true. The more documents we have about what was behind the lawsuits by Fannie and Freddie, the stronger the argument of agency finding. It might be enough to shift the burden of proof over to the bank to show that the allegations were not true.
BofA settles with Freddie Mac for $404M
08:00 AM ET · BAC
The $404M settlement (less credits of $13M for repurchases already made) is over reps and warranties on 716K single-family mortgages originated (between 2000-2009) by Bank of America (BAC) and sold to Freddie Mac (FMCC).
Any payment made by BofA is fully covered by the bank’s existing reserves. With this deal, says the bank, BofA has resolved all outstanding potential rep and warranty claims by the GSEs on loans sold by both it and Countrywide from 2000-2009.
BAC +0.1% premarket.
Read more at Seeking Alpha:
Filed under: foreclosure