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Bank of America Reaches $10.3 Billion Settlement

Where does the money go in a settlement like this?

As many of you know, I am not an advocate of Bank of America, having said that, I don’t understand this one at all. It is my understanding that this settlement stems from B of A’s purchase of Countrywide. This was a purchase that they didn’t want to do, but were literally forced to do by the FED. If I recall the purchase price was $4 billion, which means that the settlement was two and a half times the purchase price. Now that is what I call a great deal.

I have always been curious, where does the money go, is it paying off the deficit in this country. With all of the settlements that the FED has worked out over the past couple of years, where does the money go?

Check out this article for details on the settlement: 

BofA, Fannie Mae Resolve Repurchase Claims

By: Krista Franks Brock

"Bank of America and Fannie Mae reached a $10.3 billion agreement Monday to resolve repurchase claims on loans originated from 2000 through 2008. The agreement also requires B of A to pay the GSE $1.3 billion in compensatory fee obligations."

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MrsSmithWatchingWashington January 12, 2013 at 09:23 PM
I am confused- I had a Countrywide mortgage for a few years and then my mortgage bank turned into Wells Fargo. Does anyone know how this happened? (BTW, Wells Fargo is VERY difficult to work with; I am going through a nightmare with them right now concerning a home equity line of credit payoff.)
Joe Petrowsky January 13, 2013 at 01:01 PM
Send me a separate email joe@righttracfg.com as I may be able to coach you through the issues. Joe
jane January 13, 2013 at 02:19 PM
There is no doubt in my mine that if BoA is agreeing to a settlement with Fannie then they know they owe it and they know that they are getting a good deal. Banks have never settle for anything but a great deal. That's why they continue to work the fringe. They know if they get caught they will still pay less than what they made on the 'fringe'.
Agent 86 January 13, 2013 at 02:30 PM
I actually think BoA wanted CountryWide but didn't do their homework. And Lewis was always looking for an opportunity to play seriously on Wall Street (BoA's investment firm was very small in comparison). However after initial interest in ML and then more information about their "issues" surfaced, I do think Lewis wanted out. And the threats started.... See his testimony to New York Attorney General Andrew Cuomo in 2009 'It Wasn't Up to Me': Excerpts From Ken Lewis's Testimony http://online.wsj.com/article/SB124050112892948367.html This will hurt BoA even more now with more litigation: http://www.boasecuritieslitigation.com/ And perhaps more for ERISA litigation... Of course stockholders will see pennies returned as with the recent SEC settlement ): It is too bad. The Execs ruined a pretty decent company with purchases of CountryWide, ML and MBNA.
Daniella Ruiz January 13, 2013 at 02:44 PM
remember all that hubub a few years back? its was due to these bankers and mortgage people 'bundling' up various lots of the mortgages (they refer to them as 'products') and actually selling them to each other. they hold the paper that you signed saying you are obligated to pay on, yet they can swap them about as if they were an actual item. so if countrywide decides to put your 'paper' in a box with others, they can somehow 'sell' it to another institution, thus giving the new 'owner' of your debt, the say so and the nightmares you are suffering. they are playing everyone of us as puppets on strings, with little or no regulations on how tight and jerky they yank those strings either! THEY OWN YOU, don't you get it? (well at least they own enough of your debt to threaten you and get away with it!)

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