Bank of America Reaches $10.3 Billion Settlement

Where does the money go in a settlement like this?

As many of you know, I am not an advocate of Bank of America, having said that, I don’t understand this one at all. It is my understanding that this settlement stems from B of A’s purchase of Countrywide. This was a purchase that they didn’t want to do, but were literally forced to do by the FED. If I recall the purchase price was $4 billion, which means that the settlement was two and a half times the purchase price. Now that is what I call a great deal.

I have always been curious, where does the money go, is it paying off the deficit in this country. With all of the settlements that the FED has worked out over the past couple of years, where does the money go?

Check out this article for details on the settlement: 

BofA, Fannie Mae Resolve Repurchase Claims

By: Krista Franks Brock

"Bank of America and Fannie Mae reached a $10.3 billion agreement Monday to resolve repurchase claims on loans originated from 2000 through 2008. The agreement also requires B of A to pay the GSE $1.3 billion in compensatory fee obligations."

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Lynn 860-819-1001 January 11, 2013 at 01:58 PM
I should get some of that money, from what was done to me from 2007-2010. My original mortgage took place in Arizona from Country Wide. Yes, I was caught up in all of that mess. After BOA bought them out I eventually had to move back to CT to care for my 98 yr. old Mom. What BOA put me and my realtor through was inhumane, no one should be able to have that much control over a person's life. I eventually lost the house to a short sale, after they had started foreclosure proceedings, and that eventually lead to me having to file bankruptcy. Anyone that says that BOA works with you is sadly mistaken.
Daniella Ruiz January 11, 2013 at 02:21 PM
of course the bank works with you! right alongside you and the flow of money they intend to extract from you, for the most mundane, effortless task of shoving paperwork to and fro! bankers have been doing this for years and years, they are perhaps the ultimate con artists, legalized and re-ASSURED by the deep pockets of the good ol USA. (i mean, the good old bottom of your tax pockets!) does anyone wonder why so many foreign criminals are leaping at the chance to grab any piece of their ill gotten gains? if the banks get stung, they just file a claim to the Fed Reserve and bingo they get REIMBURSED with YOUR TAX MONEY. it a no lose game, both for the criminals overseas AND the ones HERE in the banks. the ones losing are the saps paying taxes, the ones who actually DO pay taxes. so that excludes some of the BIGGEST most profitable corporate schemers known to mankind. (excluding the Chinese, but, who are quickly getting their playbook in order to cash in TOO!) enjoy the east coast, at least until you end up in a tent.
Charlie Thunders January 11, 2013 at 02:21 PM
Hey Linda, Should paid your mortgage payment on time then the rest of us Tax Payers would'a have to pick up the Tab on U! My Best to your Mom though.
IRTURONG January 11, 2013 at 02:27 PM
of course boa will work with you,Bill Clinton told Barney and Chris to make sure that they would
patriot76 January 11, 2013 at 04:44 PM
i have had accounts with bank of america for a long time, i have had no bad expierences with their services. they always worked with me to resolve problems when hard times hit. my mortgage is NOT thru them and i cant get the mortgage company to help me at all. they say they cant do anything because we are not underwater/behind/owe more than our house is worth. the problem seems to stem from people who thought that "i paid 200k for my house, so it must be worth 250". if you paid more for your house than its worth, i have a car i'd like to sell you.
James Bond January 12, 2013 at 07:10 PM
Bank of America, not the America I live in that's for sure.
Joel Mrosek January 12, 2013 at 08:23 PM
Joe, you are correct. BoA didn't want Countrywide or Merrill Lynch. Ken Lewis tried to get out of the Merrill Lynch merger and was threatened by Paulson and Bernecke. Most of Countrywide loans conformed with Fannie and Fredie's criteria to be resold. The bank 'bailout' was really a bailout of Fannie and Fredie. Why would BoA pay a settlement to Fannie and Fredie? When the Treasury Secretary and Chairman of the Fed feel they can threaten such an institution is is cheaper to pay the blackmail. Besides, the big banks have been making huge profits on taking Treasury bonds an nearly zero interest (No one else will take them) and then loaning out the money at a higher rate. It is a dirty game that recapitalizes the banks, so the banks can in turn "pay" to bailout Fannie and Fredie, whose losses range between $500 billion and $1 trillion. So much for the gov't mandating homeownership as a "right".
Andrew Ziemba January 12, 2013 at 08:25 PM
It goes to pay off the INTEREST on the debt. Yet... people beg for more enslavement to the mega banks.
MrsSmithWatchingWashington January 12, 2013 at 09:23 PM
I am confused- I had a Countrywide mortgage for a few years and then my mortgage bank turned into Wells Fargo. Does anyone know how this happened? (BTW, Wells Fargo is VERY difficult to work with; I am going through a nightmare with them right now concerning a home equity line of credit payoff.)
Joe Petrowsky January 13, 2013 at 01:01 PM
Send me a separate email joe@righttracfg.com as I may be able to coach you through the issues. Joe
jane January 13, 2013 at 02:19 PM
There is no doubt in my mine that if BoA is agreeing to a settlement with Fannie then they know they owe it and they know that they are getting a good deal. Banks have never settle for anything but a great deal. That's why they continue to work the fringe. They know if they get caught they will still pay less than what they made on the 'fringe'.
Agent 86 January 13, 2013 at 02:30 PM
I actually think BoA wanted CountryWide but didn't do their homework. And Lewis was always looking for an opportunity to play seriously on Wall Street (BoA's investment firm was very small in comparison). However after initial interest in ML and then more information about their "issues" surfaced, I do think Lewis wanted out. And the threats started.... See his testimony to New York Attorney General Andrew Cuomo in 2009 'It Wasn't Up to Me': Excerpts From Ken Lewis's Testimony http://online.wsj.com/article/SB124050112892948367.html This will hurt BoA even more now with more litigation: http://www.boasecuritieslitigation.com/ And perhaps more for ERISA litigation... Of course stockholders will see pennies returned as with the recent SEC settlement ): It is too bad. The Execs ruined a pretty decent company with purchases of CountryWide, ML and MBNA.
Daniella Ruiz January 13, 2013 at 02:44 PM
remember all that hubub a few years back? its was due to these bankers and mortgage people 'bundling' up various lots of the mortgages (they refer to them as 'products') and actually selling them to each other. they hold the paper that you signed saying you are obligated to pay on, yet they can swap them about as if they were an actual item. so if countrywide decides to put your 'paper' in a box with others, they can somehow 'sell' it to another institution, thus giving the new 'owner' of your debt, the say so and the nightmares you are suffering. they are playing everyone of us as puppets on strings, with little or no regulations on how tight and jerky they yank those strings either! THEY OWN YOU, don't you get it? (well at least they own enough of your debt to threaten you and get away with it!)


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something