A big, big UH OH, whadda we gonna do now?…….
The lawsuits by the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, came as a surprise to the market and weighed on bank shares. The lawsuits could add billions of dollars to the banks’ potential costs at perhaps the worst possible time for the industry.
The FHFA accused major banks, including Bank of America Corp, its Merrill Lynch unit, Barclays Plc, Citigroup Inc and Nomura Holdings Inc of selling bonds backed by mortgages that should have never been packaged into securities.
The biggest banks are already negotiating with the attorneys general of all 50 states to address mortgage abuses. They are looking for a comprehensive settlement that will protect them from future litigation and limit their potential mortgage litigation losses.
“This new litigation could disrupt the AG settlement,” said Anthony Sanders, finance professor at George Mason University and a former mortgage bond strategist.
Can you tell us how this will help/hurt the Homeowner that is trying to save there homes? They sue the banks,investors v banks,banks v Aig and onward. Again, I sit here and wonder how the hell am I going to get help with no one wanting to help me,check out some crap on twitter @judemcdonald and know I started calling for help on 1/25/10 the First month and still counting month after month. Oh, I am in bed with Mers on 7/25/11 myself & Mers assigne my home to Alaska Fed.Credit union by Bank of America. They beat me by one day to recorder of Deeds. No surprise working for a modification is like training a mean,bad,starving dog to be nice & quiet.