Tuesday, October 4, 2011

Lenders & Servicers may face $25 billion in FHA denials

MORTGAGE SERVICERS:  Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. are among mortgage servicers that may face $13.5 billion in costs and

MORTGAGE LENDERS:  May face $11.5 billion in additional costs if the Federal Housing Administration (FHA) rejects insurance claims on soured loans.

Bank of America & Countrywide: combined have $14 billion in endorsed mortgages
Wells Fargo & Company:  originated $9.8 billion in endorsed mortgages
PNC Financial: (acquired National City Bank portfolio) $ 3.6 billion insured by FHA

"We go where the evidence takes us...if it takes us to...players on Wall Street, so be it"
........ Helen Kanovsky - HUD’s general counsel

read more in Bloomberg Businessweek - October 4, 2011 (HERE)

 "Nobody was doing any mortgage due diligence whatsoever,"
"The only question - 'Whos next?' 
........ Christopher Thornberg - principal at Beacon Economics LLC in Los Angeles.

HUD / FHA loan portfolio = $1 TRILLION dollars with only $ 4.7 billion in capital
........Paul Miller, a former examiner for the Federal Reserve Bank of Philadelphia and an analyst with FBR Capital Markets in Arlington, Virginia

"The Housing and Urban Development (HUD) department is examining loans insured through the Federal Housing Administration (FHA) and may refer additional cases to the U.S. Justice Department"
........ Helen Kanovsky - HUD’s general counsel

OHIO FRAUDclosure shared the news (in our June 17th, 2011 post - HERE)

Deutsche Bank AG
United States Court: Southern District of New York
Case: 2011 CV 2976   Jury Trial Demanded

The above case has REVEALED.... what we already know...these loans are RIPE with FRAUD
and US tax-payer owned Fannie Mae and Freddie Mac – ARE BROKE.
TIME TO PAY- UP..... for all the fraud!!!!    

To Big To Fail ???
Bank of America stock has plunged 59% this year (below $6 for first time since 2009)
JPMorgan stock has lost 32% in value and  Wells Fargo has fallen 25% year to date.

Related News: BofA to Shutter Lending Unit After Auction Fails
more from Bloomberg Businessweek - October 4, 2011 (HERE)

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