foreclosuresolvers.com Because of the discoveries from the foreclosure-gate investigations, Bank of America, JP Morgan and other lenders are going to be required to buy back billions of dollars in bad loans that were packaged and sold as AAA rated securities. Insiders has testified that up to 80% of the loan they sold did not meet their own underwriting standards. So this meant those loans had a high likelihood of defaulting which most did. Now heavy hitters like PIMCO, the New York Fed and other are demanding these originating lenders buy back these bad securities because of breach of contract and fraud. If these lenders really get stung by this and can’t continue to sell these bad loans to the federal government, they may be more motivated to offer easier and more effective loan modifications in the future.




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