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Bank of America failed to disclose losses

Bank of America disclosed a $15.3 billion loss after Merrill Lynch was acquired. They also disclosed a $20 billion bailout by the government. They then suffered a loss in stock price of more than $50 billion.

Stockholders are angered at the lack of disclosure, not to mention the stockholders’ losses, and the outcome of the shareholder lawsuit could hold officers personally liable.

According to the plaintiffs, who include the Ohio Public Employees Retirement System and a Netherlands pension plan that is the second-largest in Europe, Bank of America’s senior management, including Mr. Lewis and Mr. Price, began to learn of large losses at Merrill Lynch in early November 2008, months before the deal closed.”

Read the full account in Dealbook

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BOA to Eliminate 30,000 Jobs

September 12, 2011

BOA Chief Executive, Brian T. Moynihan announced today that Bank of America expects attrition and the elimination of appropriate unfilled roles [whatever that may mean] to play “a significant part” in achieving the anticipated decrease in jobs. Other large banks led the way in reducing their work forces: Wells Fargo, Bank of New York Mellon, Morgan Stanley and Goldman Sachs have all begun cutting jobs. HSBC, London, has also announced job cuts, with the same aim of unemploying 30,000 workers.

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FHA Retracts 3 Mortgagee Letters

September 11, 2011

RETRACTED: Three Notices for FHA Lenders Beginning Monday, September 12, 2011, lenders will no longer be able to order a streamline refinance case with an appraisal. The only available streamline refinance case type will be streamline without appraisal. A prior FHA refinance case with appraisal should be ordered as a fully processed Prior FHA case [...]

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Fannie & Freddie near Settlement with the SEC

September 9, 2011

Big Dogs to admit they inadequately disclosed risk Fannie Mae and Freddie Mac are said to be nearing settlement with the SEC on the charge that they inadequately disclosed their exposure to high risk subprime loans. According to Dealbook, the settlement is said to include no monetary penalty, or admission of fraud, but according to [...]

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Remodeling: Does it pay for itself when you sell your house?

September 9, 2011

Do You ever Recover the Cost of Remodeling? Every year Remodeling magazine looks at what’s hot in renovations to calculate how much owners get back from it when they sell their homes. Sal Alfano, editorial director for Remodeling Upkeep is more popular than upgrades these days. These are the projects that often recoup the biggest [...]

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United States prepares to Sue Big Banks Over Mortgages

September 2, 2011

The Feds are preparing lawsuits against a dozen or so big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in [...]

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Bank of America Freezes Foreclosures

October 2, 2010
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Like GMAC and JPMorgan Chase, The New York Times reports that BOA is “reviewing documents in all foreclosure cases now in court”. Bank of America intends to “amend all affidavits in foreclosure cases that have not gone to judgement.” What this means is that tens of thousands of foreclosure cases would stall in the system [...]

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Twenty nine percent of Americans don’t qualify for a mortgage

September 28, 2010

Zillow reported yesterday that as many as one third of Americans can’t qualify for home mortgages. Credit scores under 620 won’t qualify for 30-year mortgages even with down payments as high as 25 percent. The say that 29.3% of Americans have a credit score of 620 or less. They also report that 47% of Americans [...]

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Zillow’s Mortgage Marketplace Rates

September 26, 2010

The average 30-year fixed mortgage rate in California, as reported by Zillow Mortgage Marketplace is currently at 4.25 percent, down seven basis points from 4.32. This is the lowest rate reported (surprise) since Zillow Mortgage Marketplace went online in 2008. The rates Zillow reports are real-time mortgage rates based on mortgage quotes submitted daily by [...]

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