Bank of America Principal Reduction Announcement Appears to Be Little More Than PR Scheme (crooksandliars)
_**Alan Grayson on the original problem with Bank of America**_
As part of the mortgage settlement announced earlier this year, Bank of
America announced that they sent out 200,000 letters to underwater mortgage
holders they own or service, offering them the opportunity to reduce their
principal. Eligible letter recipients can receive reductions as high as
$150,000. Sounds good, right? Not so fast.
David Dayen points out that this isn’t really going to hurt Bank of America
much at all:
> In other words, this is exactly as we suspected; BofA will try to extinguish
cash penalties by modifying principal on loans they service but don’t own. And
they’re trying to load up on the modifications with those loans.
>
> …
>
> I’m generally happy to see any principal reduction happening, though of
course these are letters and not actual principal reductions. BofA sent out
the letters to 200,000 borrowers, and now they can pick and choose on whom to
bestow these benefits. And additionally, BofA will build in a three-month
trial period where borrowers will have to pay the mortgage at the new rate.
This was the trap in HAMP, as borrowers didn’t get an answer on …
What is a mortgage loan modification?
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Regulators target fair servicing: regulators are now analyzing whether minority borrowers are receiving loan modifications on par with similarly … An article from: Mortgage Banking $9.95 This digital document is an article from Mortgage Banking, published by Mortgage Bankers Association of America on June 1, 2010. The length of the article is 2997 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Regulators target fa… |
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The Educated Borrower: Your Mortgage Bible $24.33 No Synopsis Available |
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Loan Modification For Dummies ® $16.99 No Synopsis Available |
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