Loan Buyback Saga Far From Over. Blame Cannot Be Localized

Of course news that Bank of America had settled GSE repurchase claims on loans written by Countrywide ( for pennies on the dollar ) brought out a chorus of back door bailout boo birds. But I must remind, the fun part isn't over yet! Al Yoon and Tom Hals write on the mess that has yet to be cleaned up.... I called attention to a few specific comments because they highlighted the confusion that arises when private investors attempt to prove a blatant breach of reps and warrants against an originator. Clearly the deck is stacked against those who are looking for retribution. The same can be said about the GSEs in this situation, which may or may not shine some light on why they were so willing to resolve repurchase claims with BoA even if they only recovered pennies on the dollar (bad for tax...(read more)

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Source: http://www.mortgagenewsdaily.com/01042011_industry_on_trial.asp

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