The Federal Reserve Bank of New York has joined a group of investors demanding that Bank of America buy back billions of dollars worth of mortgage securities that are plagued with shoddy documentation and lending standards, according to people familiar with the matter.
Some of the most powerful investment groups in the country as well as the New York arm of the central bank are accusing one of Bank of America’s major mortgage divisions of cutting corners when it was issuing mortgages during the housing boom and as it has been foreclosing on struggling borrowers during the bust.
In fact US just is aware of the error of judgement to seize thousand of houses that generated a crisis in real estate and peoplewithout any houses.
Quite difficult to find sources on these points. european TV channels are not exactly unbiased on this matter. US friends report it is a real crisis..
It makes me think to a quite wellknown client – bank – which uses mortgages for her loans…they told me..
we will find any solution but not truy to seize the house, not try to sell it in auction or just not being owner of it !!