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“Robin Hood in Reverse”: Bank Bailout Bonanza Heats Up (Again)
The Daily Ticker Reports that last Friday Bank of America received ANOTHER so-called “bailout” using tax payer funds. They never really went away so don’t call it a comeback…but it’s been a big week for bailouts.
Bank of America Corp. has agreed to sell part of its home-loan portfolio to government-controlled housing giant Fannie Mae, as the bank looks to shed assets and pare its exposure to an array of mortgage woes. Rithoitz, Blodget and Task have a lively discussion about the Fannie
Mae deal to see the full interview – GO HERE
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By DEADLY CLEAR
TARP 2.0. The deal finalized last Friday. The purchase price is more than $500 million to buy the servicing rights to 400,000 of Bank of America’s worst-performing loans with an unpaid principal balance of $73 billion. “While not technically a bailout, the transaction was not done for altruistic reasons.” How many of those loans were MERS? How many have lender fraud attached? “Hey, Fannie you take over these loans because we [BofA] can never prove clear title. Maybe if we move them around enough no Judge is ever going to be able to figure it out.”
Last Friday? Did you hear about it? Guess not – especially during the crazed debate of the US Debt. What better way to cover it up but to do the deal while people are still reeling about America’s potential default. And then there was the S&P downgrading of America – and we pick up more debt?! Are they just nuts? Geithner gave the banks a blank check without Congressional intervention. Enough! Congress get a grip take back your control. Geithner’s plan is not working. Wake up!
The banks are treating the government like it’s their personal ATM.
This week we have Uncle Sam offering to rent homes. They likely have to rent because the government doesn’t have clear title either. (Editor’s note: Keep track here homeowners – I believe I’ve heard the attorneys call this unjust enrichment that you may be entitled to). This just proves my point.
The states should demand their properties back. Allow the states to reconstruct the mortgages with the borrowers based on the fair market value and 2% for 30 years. The government is just going to cause slums to develop because they can’t even handle welfare correctly – how are they going to patrol the upkeep, maintenance, HOA fees and carry the insurance on 400,000 renters? Does this administration think that taxpayers want this responsibility? Yeah, you can foreclosure – but you still have those same costs.
Where’s the transparency?
This is just servicing rights – not the collateral, likely because these loans are in Trusts (being suing by investors). So, our government is taking over the servicing rights for $1250 a piece (yes, that’s correct – we are the collection agency of defaulting loans for a pittance), and now OUR government will have the added expense of foreclosure.
Believe it – there is no way, unless a homeowner rolls over and plays dead, that a foreclosure is going to cost less that $10k. And in a good case the foreclosure mill attorneys can fee crank over $100k easily. Do the math.
Who came up with the $73 Billion figure? That’s an average of $182,500 per home. Let’s just vet the homeowners at 2% for 30 years and call it a mortgage payment of $900 and re-write a legal mortgage – without MERS or any unconventional paperwork.
Deadly Clear 
Yeah, but even if FNMA has to do the foreclosures, don’t the cost of those come off the top? I’m still trying to figure out how selling servicing rights, and not the asset (the losing proposition) being serviced, benefits B of A.
Spending too much money chasing payments that aren’t being made? If it’s costing B of A to service loans, then it stands to reason to me the loans are already in default.
I am in total shock at reading this. I can’t beleive that those putz in power, disrespect the people so much, especially those who have been fighting BofA for years.
I certainly wont stop the fight as my fraud started before I ever signed a document and continues to this very day. I’m sorry to say that if it requires that the US becomes responsible to pay any kind of damages in my case, I certainly hope that WE bend Bank of Stealing America over and take the money back from them.