Officials intimately close to the case have stated that Bank of America has come to a record-breaking $17 Billion settlement. The purpose is to conclude the investigation in the role of selling the mortgage-backed securities; prior to the 2008 financial fiasco. Furthermore, an official, who requested to stay anonymous, stated that Bank of America will come forward with $7 billion in consumer relief. And, $10 billion in cash. In the last yet Citigroup had a settlement of $7 billion. And, JPMorgan Chase & Co. had a settlement of $13 billion. Moreover, like Bank of America, the distribution of their settlements happened in both cash and “credits” for consumer aids; however, Bank of America has at the largest settlement deal thus by at least $4 billion.
In fact, the negotiation occurred through a joint state. Also, through a federal working group created by President Barack Obama 24 months ago along with the Justice Department. And, several other state and federal authorities. The settlement proceeds are expected to be shared among the participating states. Bank of America must admit that it had severely misguided the quality of the mortgage-backed residential securities; by Merrill Lynch, Countrywide Financial, and itself as part of the deal. Moreover, the purpose of the settlement is to accommodate those individuals whose mortgages Bank of America, Merrill Lynch, and JPMorgan Chase & Co combined into securities. And, then sold to investors.
The securities were endorsed as almost safe investments. Although, the residential mortgages included homeowners who were questionable at best about repaying their loans. That is until investors experienced the market crash and lost billions of dollars. The lack of quality of the loans kick-started the recession in 2007. It caused enormous losses for the investors and an abundance of foreclosures.
The banks responsible for these dubious practices paying for the monies is actually not nearly enough to cover the damage; the damage that happened due to the housing market and economy during the subsequent recession.
From 2004 to 2008, the three banks combined provided $965 billion in mortgage-backed securities. Countrywide issued about 75 percent of that total. Bank of America disputed its liability for the sub-prime mortgages provided by Merrill Lynch and Countrywide. Bank of America got charges, in a federal lawsuit in 2013, relating to distorting data about the underlying mortgages. And, for defrauding and failing to disclose risks of the residential mortgage-backed securities to its investors. The Justice Department also filed a civil action against Bank of America. They claimed it violated the Financial Institution Reform, Recovery, and Enforcement Act.
If you have questions about Foreclosure, Loan Modification, Bankruptcy, Short Sale, or other alternatives, please feel free to call my office at 888-886-0020. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
"*" indicates required fields
