BofA Says Foreclosure Estimates ‘Grossly Distorted’

Discussion in 'Wall St. News' started by ASusilovic, Oct 15, 2010.

  1. Oct. 15 (Bloomberg) -- Bank of America Corp.’s head of home lending said outside estimates of costs stemming from delays in foreclosures are “grossly distorted.”

    Reviews of foreclosures will delay fewer than 30,000 sales, said Barbara Desoer, president of Bank of America’s home lending and insurance unit, without specifying which estimates she believes are imprecise. The Charlotte, North Carolina-based lender will rework 102,000 pending foreclosures in 23 states and stands by the accuracy of its procedures, she said.

    Bank of America shares declined about 9 percent this week, reaching their lowest levels in more than a year, amid growing scrutiny of foreclosure practices and speculation that even greater losses may result if mortgage-bond investors challenge underlying loans and force lenders to buy them back. The lender said Oct. 8 it would stop foreclosure sales nationally pending a review of its practices over the next few weeks.

    “We believe that our assessment shows the basis for past foreclosure decisions is accurate,” Desoer said in an interview today. “The type of borrower in that 30,000 is somebody who hasn’t made a payment in an extended period of time.”

    I can smell several hedge funds behind this press release. Like Paulson and companions. +12.5 % in Sept. - 12.5 % in October ? :cool:
  2. 1) It's underestimated. :eek:
    2) Regression to the mean. :D
  3. I guess all the bankers are going to quit and start tech Companies.
  4. He`s leveraged 1:3. Fund net assets of $9bn gives him $27bn fire power. By the way : GS release yesterday a note - JPM and Citi "well positioned" in mortgage market. No coverage of BAC and WFC...

    So, JPM, GS and C are in some sort of "cooperation", hum ? Would explain their perfect non-losing trading quarters....

    But hey, prop desks have been dissolved, haven´t they ?

    Three prop traders from GS, $1.5 in initial seed money for their new hedge fund structures.