Reselling Debt Discourages Debt Relief

Tuesday, 16 November 2010 08:03 by tabdulbasser

From a recent Housing Wire article ("BofA finds securitization investors limit options for mortgage servicing"):

Bank of America Home Loans President Barbara Desoer said in written testimony before the Senate Banking Committee that because the majority of its mortgages are held by investors, the bank is "constrained" in its role as a mortgage servicer for three-fourths of their mortgage portfolio.

The committee will hear testimony Tuesday from BofA (BAC: 11.763 -2.79%) and JPMorgan Chase (JPM: 39.24 -2.10%) on recent foreclosure and documentation problems at the two banks and others. Each suspended foreclosures because employees signed affidavits without properly reviewing documentation, a problem, according to the Congressional Oversight Panel, that could threaten the entire financial system.

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Categories:   Financial Crisis
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