Bank of America was supposed to have put up some 400,000 loans for sale to private banks recently. Those loans allowed Bank of America to collect $73 Million in service fees.
But before the sale went through, Fannie Mae bought the loans for what appears to be $500,000,000 (half-billion dollars).
Which leads one to ask, "Why didn't Bank of America go through with the originally planned sale?
And why did the US Taxpayer bailout Bank of America without any noise about it in the Mainstream Media?"
Lastly, if this is indeed correct, why would Fannie Mae overpay by 7 times $500,000,000 for a potential service fee profit of only $73 Million? Was this just another shady bailout of a Too Big To Fail Bank?
Aaron Task of the Daily Ticker interviews Dan Alpert, Managing Partner of Westwood Capital, who says Bank of America may have to post another $27 Billion in losses due to continued Housing losses.
Alpert points out that this number could be understated as the Top 4 banks in America are sitting on $1.1 Trillion of real estate paper which no one knows the real value of.
The first two lawsuits by states attorney generals have just been filed against Bank of America. These lawsuits center around Bank of America's alleged fraudulent and deceptive practices concerning loan "re-modifications".
MSNBC's "Countdown" with Keith Olbermann reports why Nevada State Attorney General, Catherine Cortez Matso (D), filed her lawsuit against Bank of America:
"Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers' homes while waiting for decisions.
Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance.
Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications.
And falsely notifying consumers or credit agencies that consumers are in default when they are not."
In addition to the Nevada and Arizona lawsuits, Countdown also notes that Iowa Attorney General, Tom Miller (D), is continuing to coordinate a 50 state investigation in loan servicers' documentation practices, practices which have led some loan servicers to foreclose on homeowners who had already paid off their mortgages in full.
In a meeting with homeowners last week, Tom Miller said, "We will put people in jail," and he described the current exploitive and dysfunctional loan re-modification program as "Insane".
Countdown's fill in host, Chris Hayes, then goes on to interview Terry Goddard (D), Arizona Attorney General, for an eye opening look at how pervasive the "bilking of America" really is:
