When Countrywide Financial created deeply flawed mortgage-backed securities, it wasn’t just selling bad financial products: It was breaking its contracts. Now some ordinary investors are suing Countrywide’s buyer, Bank of Ameri…
Banks’ losses from buying back bad mortgages won’t be as bad as previously expected, according to analysts at JPMorgan Chase, who estimate those repurchases will cost about 25% less than previously forecast.
Co…
More mortgage investors appear to be joining the fight to force banks to buy back bad loans. These investors face big challenges in spite of their swelling ranks, as banks are understandably reluctant to pay.
C…
The crisis could hit bank earnings in several ways, not all of them directly related to the foreclosure problem. One big risk is “putbacks,” the faulty loans banks could be forced to repurchase. JPMorgan puts that cost at up to…