Posted on 12/23/2010 9:27:55 PM PST by DeaconBenjamin
Judge Eileen Bransten granted a motion to allow the insurer, MBIA, to use statistical sampling, turning down the objections by Bank of America.
Bank of America had told investors that it intended to fight repurchase requests—also known as put-backs—on a “loan-by-loan basis.” That process would have required MBIA and others seeking to force Bank of America to buy back loans it pooled into mortgage securities to proceed one loan at a time, a costly and time-consuming process.
MBIA has proposed that for each of the 15 securitizations—each of which contains thousands of home loans—it is challenging, it will sample 400 loans. Those loans will be subdivided according to borrowers credit score and loan to value ratios. The samples will then be tested in an effort to prove MBIA’s claims of fraud, breach of insurance contracts, and repurchase demands.
The ruling does not mean that MBIA will automatically prevail if the sampling shows that the loan pools were flawed. Bank of America may still argue that the sampling methodology was too flawed to amount to proof of MBIA’s claims. Alternatively, it could present statistical sampling of its own to counter the findings of MBIA’s sampling. But whether these arguments will prevail will be made by the finder of fact at trial—which means either the jury or—if Bank of America opts not to have a jury trial—the judge.
MBIA has been handed a powerful tool for establishing its claims. And Bank of America is a bit closer to facing the put-back apocalypse it hoped it could avoid—or at least slow down—by fighting the claims one loan at a time.
The technacalities are worth exploring.
What gives MBIA probable cause to open a court supervised fishing expedition?
Bank of America can be such a pack of whiny little babies.
PING!
Thanks. I was wondering if these were BoA originated loans or those it got part of an acquisition.
Oh...nothing except maybe a little Securities Fraud, Financial Institution Fraud, Slander of Title, Fraudulent Conveyance, Uttering Fraudulent Documents, Fraud upon the Court, and/or Bankruptcy Fraud, RICO Violations, Money Laundering, Conspiracy, Unfair and deceptive acts and practices under state law, Wire fraud, Mail fraud, Identity Theft, FDCPA violations, lack of controls, acting against public policy and it's charter therefore ultra vires (SOX Violations)....
Forget about that for now. Here's is some fraud EVERYONE can understand and wrap their arms around. Last night I finished the last chocolate on the first layer of a Whitman's Sampler. The box is nearly three inches tall and I knew just underneath the first layer I would find more chocolate covered toffee which is my favorite!
I removed the tray and what did I find? NOTHING but a cardboard filler. That's right. EMPTY!
Written with despair for mankind...our box is half empty.
You stand a much better chance of getting your other half box of chocolates, than the taxpaying citizens ever stand of seeing the banksters brought to justice or make restitution.
Because MBIA has done some examination on the mortgages on which they’re paying off and MBIA is finding a very high rate of origination fraud.
BofA has now lost their last refuge for a fraudster, ie, being able to cook the numbers. MBIA’s results from their examination of the claims they’ve already paid are so overwhelming that BofA has almost no hope of escaping a put-back now.
Sorry about the box of chocolates.
You remember what Forest Gump’s Mom said: “Life is like a box of chocolates, you never know what to expect when you open it up.” (may not be exact)
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If you make your own you know what to expect:
Free Download->
Title: Chocolate and Cocoa Recipes and Home Made Candy Recipes
http://www.gutenberg.org/files/13177/13177-h/13177-h.htm
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I have used some of the recipes and liked the results. Some of the measurements are a bit archaic, but work. The cookbook was printed around 1910.
And in doing so score a win for the homeowners at the same time!
Merry Christmas!
You bought the special reserve Whitman sampler. That one is quality so you get less. I admit, I looked for the second layer also then realized what you did.
But they are tasty. I love Whitman’s. And they are made in the USA so that makes them even better.
I also got the dark chocolate box - it has the purple border - and it is fabulous. I recommend it. It is so good and again, made in the USA.
Can any court open up any inquisition? Are there any specific governing laws for inquisitions? (NOT for the matter about which the inquisition inquires, I mean the inquisition process itself.)
Even in the face of a naughty, naughty bank, we shouldn’t open up unconstitutional worm cans.
Death by a thousand paper cuts....I like it.
BTW..I enjoy See’s Candies esp. ‘milk almonds’ normally their stores are only found on the west coast but they have outlets in some major airports around the US.
I’ve seen See’s in a Big Lots in Texas.
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