Bank of America said Monday it was ready to spend up to 8.4 billion dollars to restructure the loan portfolio of mortgage giant Countrywide following settlement of a lawsuit targeting the firm’s “predatory” lending practices.
Quoted With Edits From: Bank of America to spend up to 8.4 billion on Countrywide (AFP via Yahoo! News)
Woes for Bank of America, relief for home buyers
Bank of America posted it’s first quarterly loss in 25 years as their acquisition of Countrywide Home Loans has left them with a surge of mortgage defaults and maybe a need for payday loans.
Before the acquisitions, Countrywide Home Loans settled with eleven states after being sued for predatory practices. Countrywide was accused of turning the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn’t understand or afford as well as misrepresented loan terms, loan payment increases and the borrowers ability to afford loans. At least when you get payday loans, all terms and conditions are provided up front before you receive the loan. The settlement, the largest predatory lending settlement in history, is intended to give homeowners relief from the damage which they had caused.
Bank of America. A Diamond in the Rough
Bank of America is ready to spend 8.4 billion dollars to restructure the loan giants mortgage portfolio saying it will help put borrowers back on the path to sustained home ownership.
A diamond in the rough
Bank of America has been rewarded for it’s sound decisions the past few years, as they were one of only a few banks that refused to invest in the false mortgage securities called “credit swaps”, which caused the demise of many others. Bank of America was able to acquire J.P. Morgan Chase & Co. for pennies on the dollar after it’s collapse.
With Bank of America now directly or indirectly servicing the financial needs of 50% of the US population, it is comforting to see their willingness to help the consumer and bring credibility to an industry that has been riddled with cases of predatory lending.
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