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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (287717)	10/29/2010 2:02:09 PM
From: tejek	Read Replies (1) \| Respond to of 306849

Pimco and BAC is old news. Lets wait for all the lawsuits you were said were coming. Get back to me then.

To: The Reaper who wrote (287717)	10/29/2010 2:14:19 PM
From: Les H	Read Replies (2) \| Respond to of 306849

BizWeek Reports a Bank of America Threat to Fannie Which corporate-welfare recipient will end up holding the bag on toxic mortgages? cjr.org Bank of America, the nation’s largest lender, has resorted to tough tactics in resisting repurchases of bad loans. Facing pressure from Freddie Mac, one of the two government-controlled mortgage financing companies, to buy back money-losing home loans with problems like inflated appraisals, overstated borrower income, or inadequate documentation, Bank of America issued a blunt threat, according to two people with direct knowledge of the incident. If Freddie Mac did not back off its demands for the buybacks, Bank of America officials said, the bank would take more of the new, more profitable mortgages it is originating these days to rival Fannie Mae, these people said. Freddie and Fannie, known as GSEs (government-sponsored entities), need a steady supply of healthy new loans to climb out of their financial hole. The claimed threat from Bank of America, which was not put into writing, according to one of these people, was taken seriously enough that it has been discussed at several Freddie Mac board meetings, including one in mid-October. Some officials have urged the Federal Housing Finance Agency—the government conservator that has controlled Fannie and Freddie since they were bailed out in 2008—to confront Bank of America and prevent it from trying to play one against the other, which may be infuriating but is not illegal. “If the tactic worked, I’d be shocked and appalled,” said Thomas Lawler, a former portfolio manager at Fannie Mae and now an economic consultant. “The GSEs are supposed to be run now to minimize losses to the taxpayers. Freddie ought to ignore the threat.” FHFA Acting Director Edward J. DeMarco declined to comment, as did officials of Freddie Mac. Bank of America also declined to comment.

To: The Reaper who wrote (287717)	10/29/2010 2:37:10 PM
From: Les H	Read Replies (1) \| Respond to of 306849

Caveat Dumptor Testimony from Mr. Richard Bowen, former senior vice-president and business chief underwriter with CitiMortgage Inc.: "In mid-2006 I discovered that over 60% of these mortgages purchased and sold were defective. Because Citi had given reps and warrants to the investors that the mortgages were not defective, the investors could force Citi to repurchase many billions of dollars of these defective assets. This situation represented a large potential risk to the shareholders of Citigroup." marketoracle.co.uk