It will take a long time to hammer out a deal between the investigating team comprising of state and federal agencies with the banks over the issue of alleged foreclosure abuses said Brian Moynihan, the CEO of Bank of America based in Charlotte, North Carolina.
Speaking at a conference (Sanford Bernstein) in New York he commented that the discussions with the attorneys general of states and the USA Department of Justice together with other agencies were pushing on but there were a good number of parties involved and this is slowing down matters. He said, “The time frame keeps moving out because you have 50-plus people involved by definition. I think it will take longer than people will think”.
The largest mortgage servicer in America is Bank of America. Together with other mega lenders BofA has been discussing since last autumn with federal and state officials to settle the charges brought against the industry that it had indulged in short cuts to deal with the huge volume of foreclosures that had engulfed it following the housing crisis. In the process many homes have been wrongfully repossessed by the banks.
Last April the big banks including Bank of America came to a settlement with the banking regulators – Federal Reserve, Office of the Comptroller of the Currency, Office of Thrift Supervision and others. As per the terms of the deal the banks agreed to revamp their foreclosure processing and to engage outside third party consultants to scrutinize the foreclosures completed during the time period of 2009 to 2010.
Moynihan said separately that Bank of America would continue its fight against external investors who wanted the bank to buy back soured mortgages. However he conceded that coming to a settlement regarding such disputes is sometimes to the best interests of the shareholders. He agreed, “There’s a point where fighting doesn’t have any value”.
Last year in autumn, Moynihan had referred to the dispute as a hand-to-hand fight and that the bank would put up a strong fight to protect the shareholders’ interests. But recently BofA has reached settlements with some of the big external investors as well as insurers.
In the early part of this year the bank agreed to most of the repurchase claims with Fannie Mae and Freddie Mac. Last April the bank came to a settlement worth $1.6 billion with Assured Guaranty Ltd.
Although there are concerns about repurchase and foreclosure Moynihan commented that he saw no necessity of raising capital from outside.
Julie Thompson, has been working on ForeclosureDataOnline.com studying the foreclosures market, helping buyers on the finer points of Inglewood foreclosed homes for sale. Try to visit ForeclosureDataOnline.com and find all related information about foreclosed homes.