Bankers Broken Promises Mortgages: Feds Make Banks Buy Back Your Mortgage

[Procrustes Stretched]

Bankers and Lenders and Broken Promises Mortgages: Feds Make Banks Buy Back Your Mortgage

(Reuters) - Lenders like Bank of America Corp and Wells Fargo & Co say they are facing mounting pressure to buy back bad mortgages they sold to investors, signaling that banks' home-loan headaches could continue for years...When selling the mortgages, banks made promises or "representations and warranties" about the loans. Investors can ask banks to buy back soured mortgages if these promises were evidently broken, for reasons such as poor underwriting, insufficient verification of income or other documentation errors.

Banks have fought some of these claims, but most lenders still expect to have to buy back many of the mortgages...

 

[Trajan]

Link?

And based just on what is in the op, cry me a river, they knew, they all knew there was no docs loans and all the other crap that was going on......so now they want a do over?

IF those loans were paying off , would they be providing points back to BAC etc? No.

They took the risk, they bought them, they are stuck with them.

 

[Procrustes Stretched]

Link?

And based just on what is in the op, cry me a river, they knew, they all knew there was no docs loans and all the other crap that was going on......so now they want a do over?

IF those loans were paying off , would they be providing points back to BAC etc? No.

They took the risk, they bought them, they are stuck with them.

nope. contract law and legislation says the loans have to be bought back if certain things are proven, which we know are true.

there are lots of people I think should be stuck with their choice to lie on loan applications, but if lenders played dirty and broke laws and regulations --- buy backs

 

[Widdekind]

"Investors" gave their money, to banks, for "gains". They essentially opened up deluxe bank deposits, that (supposedly) paid high interest rates. What is the point, of all the complexity and hoopla? Why don't banks just offer higher interest rates, to select "depositors"? That keeps the burden of debt verification risk where it belongs, in banks, with bankers, who are the historic experts. What is the real point, of all the "sophistication"? Wealthy "investors" deposit money into banks, for interest. If banks want more money, they pay more interest. By what "Magick" means, would "sophistication & fine print" actually translate, into actual profits?

 

[Trajan]

Link?

And based just on what is in the op, cry me a river, they knew, they all knew there was no docs loans and all the other crap that was going on......so now they want a do over?

IF those loans were paying off , would they be providing points back to BAC etc? No.

They took the risk, they bought them, they are stuck with them.

nope. contract law and legislation says the loans have to be bought back if certain things are proven, which we know are true.

there are lots of people I think should be stuck with their choice to lie on loan applications, but if lenders played dirty and broke laws and regulations --- buy backs

which we know are true.

wow, can touch your cape?

well I guess thats the op then, a whole bunch of what if....wheres the link?

 

[Care4all]

here ya go

RPT-U.S. banks haunted by mortgage demons that won't go away | Reuters

it's not the people that took out loans...it's the entities that bought mortgaged back securities from the banks, if the banks misrepresented the MBS's being sold then banks have to buy them back from the people or institutions that bought them....basically.

this is good....

BOA and others are lucky their CEO's and those responsible aren't in jail...

 

[Widdekind]

If a MBS is a "financial product"; then the "producers" of that financial product would, logically, have to "recall" any "defective" products that they produced

 

[Mad Scientist]

I used to favor the Banks, but now after seeing what damage they've done to the International Economy using leveraged mortgaged backed securities to amass TRILLIONS of dollars for themselves and impoverish others, I have no sympathy for them.

A home owner can't enslave me, but a Banker can. Banks have more power than many countries, they need to be cut down to size. The bad bets they made need to be put into separate banks an sent into bankruptcy.

Banks should also gift the home to the owner with free and clear title. If they started doing that en masse then I'd CONSIDER not sending the lot of them to the Gallows.

 

[Mad Scientist]

If a MBS is a "financial product"; then the "producers" of that financial product would, logically, have to "recall" any "defective" products that they produced

I see your point and I agree 100%. Here's the problem:

The Banks sold the same single product, bundled mortgage securities, numerous times over to numerous different entities!

How do you sort that out? I say it starts with hangin' em!

 

[whitehall]

How in the freaking world can a bank be held responsible if you can't pay the mortgage payments you agreed to pay? The world is upside down in the liberal mind. During my lifetime I invested in almost a dozen mortgages including one with Wells Fargo and they painstakingly told me what the payments would be and I had to sign about a dozen forms indicating that I understood the terms. I hired a lawyer for first time real estate purchases and I was able to negotiate 2nd mortgages on my own. Sue the lawyers if you think you got a bad deal but the banks aren't the problem.

 

[Care4all]

How in the freaking world can a bank be held responsible if you can't pay the mortgage payments you agreed to pay? The world is upside down in the liberal mind. During my lifetime I invested in almost a dozen mortgages including one with Wells Fargo and they painstakingly told me what the payments would be and I had to sign about a dozen forms indicating that I understood the terms. I hired a lawyer for first time real estate purchases and I was able to negotiate 2nd mortgages on my own. Sue the lawyers if you think you got a bad deal but the banks aren't the problem.

that's not what this is about, read the link i gave above whitehall

 

[Widdekind]

If a MBS is a "financial product"; then the "producers" of that financial product would, logically, have to "recall" any "defective" products that they produced

I see your point and I agree 100%. Here's the problem:

The Banks sold the same single product, bundled mortgage securities, numerous times over to numerous different entities!

How do you sort that out?

Bundled MBS contain many "component parts", some of which were bad (loans). In analogy, if a car-maker sells cars with bad batteries, then they may have to recall entire cars. i'm not familiar with all the details. Banks have been crucial, acting as "pools" for public savings ("public pot"), with which profitable good loans have been organized. The root problem is not banks, nor lending, nor credit; nor investing; but speculation ("Wall Street Casino"). De facto gambling ("repackaged for sophisticated clientele") is non-productive, and so non-profitable ("except in the Ponzi short term"). Money does not grow on trees; if it did, it would only inflate prices; only production can actually be profitable. Somebody has to produce, to generate wealth (everybody else can plunder them, afterwards).

 

[Widdekind]

How ... can a bank be held responsible if you can't pay the mortgage payments you agreed to pay?

what if a bogus bank took your money and ran ? i'm not familiar with the details, but banks could, hypothetically, steal investors' money.

you acted (responsibly) as a borrower. The banks lent you money. If you knowingly mis-represented yourself, in order to acquire credit; then banks could claim relief. Likewise, if banks mis-represented themselves (and their "financial products") to investors, in order to acquire credit; then those investors could claim relief. "Fraud" is not lawful.

 

[Procrustes Stretched]

Link?

And based just on what is in the op, cry me a river, they knew, they all knew there was no docs loans and all the other crap that was going on......so now they want a do over?

IF those loans were paying off , would they be providing points back to BAC etc? No.

They took the risk, they bought them, they are stuck with them.

(Reuters) - Lenders like Bank of America Corp and Wells Fargo & Co say they are facing mounting pressure to buy back bad mortgages they sold to investors, signaling that banks' home-loan headaches could continue for years...

try a search engine.

 

[Procrustes Stretched]

Link?

And based just on what is in the op, cry me a river, they knew, they all knew there was no docs loans and all the other crap that was going on......so now they want a do over?

IF those loans were paying off , would they be providing points back to BAC etc? No.

They took the risk, they bought them, they are stuck with them.

nope. contract law and legislation says the loans have to be bought back if certain things are proven, which we know are true.

there are lots of people I think should be stuck with their choice to lie on loan applications, but if lenders played dirty and broke laws and regulations --- buy backs

which we know are true.

wow, can touch your cape?

well I guess thats the op then, a whole bunch of what if....wheres the link?

pssssssssssssssst.............

When selling the mortgages, banks made promises or "representations and warranties" about the loans. Investors can ask banks to buy back soured mortgages if these promises were evidently broken, for reasons such as poor underwriting, insufficient verification of income or other documentation errors.

Banks have fought some of these claims, but most lenders still expect to have to buy back many of the mortgages.

Bank of America, the second-largest U.S. bank, faces the biggest threat from repurchase requests because in 2008 it bought subprime lender Countrywide Financial, a major producer of toxic loans during the housing boom. Its mortgage unit has posted more than $30 billion of losses since the beginning of 2010.

About half of the bank's claims are from Fannie Mae and Freddie Mac, which were placed in government conservatorship in 2008 as their loan losses ballooned.

Tensions are so high between Bank of America and Fannie Mae that the bank stopped selling some loans to the agency in February.

U.S. banks haunted by mortgage demons that won't go away | Reuters