Reader Paul (big hat tip to him) pulled a key comment out of the B of A press release issued earlier this week that addressed Bank of America's efforts to help homeowners keep their home. The comment, burried at the bottom of the release was: "We will continue to work with distressed borrowers to match the customer's repayment ability with the appropriate loss mitigation … [Read more...] about Is Bank of America headed towards principal reductions?
Archives for April 2008
Note to readers: I'm traveling today and tomorrow so the updates will be slow. Back in the saddle Saturday.The Federal Reserve cut the key lending rate to 2% primarily due to concern over continuing woes in the housing and credit markets and the economy's flirtation with recession, but hinted that they may be done for the time being.From the Market Watch article on the … [Read more...] about Fed cuts rates to 2%
Subprime loan delinquencies have stabilized after their torrid run-up in late payments according to the latest remittance reports. This is obviously a positive sign for the housing market as fewer 60-day delinquencies mean fewer eventual 90-day delinquencies and NOD's. While analysts caution against over-reaching in the importance of the improvement they do note that it is … [Read more...] about Subprime loan performance stabilizes
Bank of America announced that it plans to work-out approximately $40 billion of loans in trouble at Countrywide as part of it's acquisition of the failed mortgage lender. BofA estimates that the $40 billion will result in a little over a quarter-million homeowners keeping their homes instead of losing them to foreclosure.From the Pacific Business News on the new BofA … [Read more...] about BofA to modify 265,000 Countrywide loans
The rating agency downgraded $247 million in Countrywide subprime loan transactions as the transactions experienced 60-day delinquency rates of ranging from 7-40%. In the process the ratings agency affirmed the ratings of $2 billion of the subprime-based transactions. Here's the breakdown - check out the delinquency numbers on these things!CWABS 2003-BC3 60+ day … [Read more...] about Fitch downgrades $247 million in Countrywide subprime transactions