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FHFA reviews GSE mortgage servicer contracts (Obama has bailed out Bank of America)
Housingwire ^ | December 9th | JON PRIOR

Posted on 12/10/2011 12:02:33 PM PST by Halfmanhalfamazing

The Federal Housing Finance Agency is looking into contracts between the government-sponsored enterprises and mortgage servicers to determine the best step to take when a servicer fails to perform well.

In the third quarter, Fannie Mae bought back mortgage servicing rights from Bank of America covering $74 billion in unpaid principal balance, according to its third-quarter financial statement. It was 11% of the Fannie loans being serviced by BofA.

(Excerpt) Read more at housingwire.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: bailout; bankofamerica; housing; socialism
74 billion bailout from us tax payers to Bank of America from our GSEs. How nice!
1 posted on 12/10/2011 12:02:43 PM PST by Halfmanhalfamazing
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To: Halfmanhalfamazing

Unbelieveable!


2 posted on 12/10/2011 12:06:30 PM PST by sheikdetailfeather ("Kick The Communists Out Of Your Govt. And Don't Accept Their Goodies"-Yuri Bezmenov-KGB Defector)
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To: Halfmanhalfamazing

The servicing rights are not the same as the mortgage. They are a separate stream of revenue from the actual mortgage repayments. It is a service provided by the servicer to the mortgage owner, for a fee of course. Early in the article, it says that the mortgages in question are owned by Fannie.

I’m not sure what’s going on here, but it isn’t the transfer of $74 Billion. More likely, the guv is looking for someone who charges less for the servicing. Maybe they are mad at BAC for the way it’s been handling foreclosures on their behalf through the RoboSigner foreclosure shops and lawyers that have popped up and caused bad publicity.


3 posted on 12/10/2011 12:49:39 PM PST by Pearls Before Swine
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To: Halfmanhalfamazing

We were already on the hook for these loans, they have just stopped BOA from servicing them. Send newt a thank you note.


4 posted on 12/10/2011 1:39:03 PM PST by org.whodat (Just another heartless American, hated by "AMNESTY" Newt, Willard, Perry and his fellow supporters)
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To: Pearls Before Swine

I would bet it is to spread the money around, you can bet these contracts are now serviced by some republicans friend. Buying votes is what it is called.


5 posted on 12/10/2011 1:42:32 PM PST by org.whodat (Just another heartless American, hated by "AMNESTY" Newt, Willard, Perry and his fellow supporters)
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To: Pearls Before Swine

You are correct. Mortgage Servicing Rights (MSR) are different from the mortgages themselves. Actually, nothing wrong with this transaction. MSRs are sold all the time.

Would you rather have Uncle Sam nationalize the servicing rights like they do in Latin America? I don’t think so.


6 posted on 12/10/2011 5:00:06 PM PST by whitedog57
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