Bank of America Corp. (NYSE: BAC) is nearing a $16 billion to $17 billion settlement with the Justice Department to resolve allegations of mortgage misconduct prior to the financial crisis, according to various reports citing people familiar with the matter. Bank of America has agreed to pay roughly $9 million in cash to the government, […]
Category: Countrywide
The purchase of Countrywide Financial in the throes of the Great Recession continues to haunt Bank of America (NYSE:BAC), as it now faces a nearly $1.3 billion fine stemming from a Countrywide lending program “hustle.” U.S. District Judge Jed Rankoff, of the Southern District of New York, on Wednesday ordered Bank of America to pay $1.27 […]
A Wednesday jury decision found Bank of America liable for defective mortgages originated and sold by Countrywide Financial, which it acquired in 2008, that contributed to the economic crisis. Rebecca Mairone, formerly a top manager at the bank’s Countrywide Financial division, was also found liable for her role in green-lighting bad mortgages and opting for […]
Funding for the Department of Housing and Urban Development’s counseling programs has been cut as a result of legislation scheduled to pass Congress this week. Made as part of a last minute deal to avoid a government shutdown, the FY 2011 Continuing Appropriations Act (H.R. 1473) removes all ($88 million) funding from the agency’s counseling […]
The consolidation of Bank of America and Countrywide’s reverse mortgage business will be complete on April 27, said a statement from Bank of America. Additionally, on the same day, the company anticipates that Countrywide Bank, FSB will be fully merged with Bank of America. The wholesale channels for forward and reverse mortgages will be managed […]
Bank of America recently announced that they will be offering LIBOR based reverse mortgage products to wholesale brokers. According to the announcement, Bank of America still believes that the CMT index is better for you and you customer but they realize the spreads between LIBOR and CMT are volatile and may reverse course in the […]
When Bank of America completed the purchase of Countrywide in July, there was no mention of what would happen each companies reverse mortgage mortgage divisions. If you take a look at last months HECM endorsements, Countrywide was the third largest originator of HECMs and Bank of America was fifth. Together the two companies become the […]
Late Friday afternoon Countrywide announced that they were discontinuing their reverse mortgage broker advisor program due to the Housing and Economic Recovery Act of 2008 being signed by the president. While we haven’t seen the mortgagee letter from HUD regarding the elimination of the program, Countrywide is taking a proactive approach. According to the email […]
On May 16, 2008, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2008-14, which provides guidance on the role of “advisors” in the HECM program. The only lender I’ve seen make any drastic changes to their advisor programs after ML-14 was released is Countrywide. As of May 16th, Countrywide Reverse Mortgage Advisor […]
As the credit crunch spreads into the proprietary reverse mortgage business, it is beginning to cause issues for both originators and borrowers with dwindling options for these products. Welcome to the land of the Double Application. Many loan originators have begun having to originate two reverse mortgages at the time of application never knowing if […]
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