How would you like a 39% principle reduction on that faulty Countrywide loan that you’re struggling to pay? How bout a 39% principle reduction on any one of the faulty loans that were originated by a shady subprime lender that engaged in a whole range of questionable activities in order to get you to sign?
WELL THAT’S NEVER GOING TO HAPPEN, but the Bank of America at least apparently just inked a major deal that results in a dramatic reduction of their exposure. The equivalent to a principle for some of their loans….and this is probably going to continue among all the servicers….
Bank of America agreed to pay nearly $3 billion to Fannie and Freddie, which equates to 39 cents on the dollar or about 20% less than the 50 cents on the dollar the Congressional Oversight Panel recently estimated.
“Yet that does not mean Bank of America got a bargain,” MF Global said. “The bank has been paying out on GSE loans for many quarters. The first loans that the enterprises returned contained the most obvious defects and defaulted quickly. That means the most recent put backs ““ those covered by the settlement ““ may be less clear cut.”
So much for the state’s attorney generals really sticking up for the American people. So much for the rule of law. We continue with the 1% getting all the benefits and sucking them all from all of us.