By Rick Rothacker – Lenders like Bank of America Corp and Wells Fargo & Co say they are facing mounting pressure to buy back bad mortgages they sold to investors, signaling that banks‘ home-loan headaches could continue for years.
When selling the mortgages, banks made promises or “representations and warranties” about the loans. Investors can ask banks to buy back soured mortgages if these promises were evidently broken, for reasons such as poor underwriting, insufficient verification of income or other documentation errors.
Banks have fought some of these claims, but most lenders still expect to have to buy back many of the mortgages. more> http://tinyurl.com/7vab96n
- Wells Fargo’s mortgage strength is U.S. weakness (blogs.reuters.com)
- Refinancing Seen Peaking Without More Capacity: Mortgages – Bloomberg (bloomberg.com)
- Mortgage Bias: Economic Jim Crow (theroot.com)
- New week, new record as mortgage rates fall again (economywatch.msnbc.msn.com)