Citing Flawed Valuations, Bank of America Repurchases
$330 Million in Freddie Mortgages
Bank of America will pay Freddie Mac $330 million dollars to buy back allegedly flawed home loans, Bloomberg reported on May 23.
Dan Frahm, a spokesman for the Charlotte, N.C.-based Bank of America, told Bloomberg that the bank has agreed to the repurchase “because the valuation method used at origination did not meet the investor’s technical requirements.” Frahm noted the flaws have since been repaired.
Bank of America CEO Brian T. Moynihan is looking to mitigate further losses after incurring more than $42 billion dollars in costs related to defective home loans, Bloomberg reported. Buyers and insurers of mortgage securities have insisted on compensation for faulty debt created by Countrywide Financial Corp., which the bank purchased in 2008, at a time when the institution was the nation’s largest residential lender.
Freddie Mac and Bank of America announced a $1.28 billion settlement in January 2011 resulting from bad loans sold through 2008 by Countrywide. Other transactions between the entities were not included in the deal, and a portion of the loans covered by Freddie’s latest announcement had more recent origination dates.
Bank of America’s backlog of pending requests for refunds on shoddy loans reached a record $16.1 billion in the first quarter 2012 as the dispute widened between BOA and Fannie Mae, which ceased accepting new loans from Bank of America in January, according to the Bloomberg report.
“It is also unclear if this is a one-time issue or a process that will be revisited at some regular interval,” the Barclays analysts told Bloomberg. “Another concern would be whether similar buyouts are being considered or being implemented at Fannie Mae.”
Nationally Recognized Appraisal Leader Ann O'Rourke is a featured speaker!
As genuine MAC addicts, we at REV join the millions of fans and customers around the globe in mourning the death of Apple founder and former CEO, Steve Jobs. He enriched the lives of so many of us with unique 21st Century devices that are beautiful, practical and most importantly, fun to use.
For a moving convocation by one of this generations greatest thinkers, click the video below to watch Steve Jobs’ commencement speech at Stanford from May 2005.
SAVE THE DATE: Friday, April 8, 2011 • 9:00am – 12:00pm
Grand Hyatt San Antonio 600 East Market Street San Antonio, TX 78205
The Appraisal Standards Board (ASB) will meet in San Antonio in April to make its final consideration of revisions for the 2012-13 edition of USPAP.
Based on the feedback from the Fourth Exposure Draft, the Board will expose its Fifth (and final) Exposure Draft for proposed changes for the 2012-13 edition of USPAP in mid-February, 2011.
Written comments in response to the Fifth Exposure Draft will be accepted through April 1st, 2011. Oral comments will also be accepted at the April 8th public meeting. The Board plans to adopt revisions for the 2012-13 edition of USPAP at the April 8, 2011 public meeting.
Please note that this meeting will be followed by a meeting of the State Regulator Advisory Group at 1:00 p.m., and these two meetings are at the Grand Hyatt Hotel; the AARO (Assoc. of Appraiser Regulatory Officials) Conference is being held at the Hotel Contessa at 306 West Market Street in San Antonio.
Your online registration will assure proper seating at the meeting.
Standards Administrator: Carrie Cadle
202-624-3058 | email@example.com
Welcome to the Fall 2012 Online Edition of Real Estate Valuation Magazine.
Real Estate Valuation Magazine started in 1986. Since then, we have published over 100 issues—75 printed editions through the Spring of 2003, and 25 online issues since then. For the past 15 years, my wife and longtime collaborator, Ruth Lambert, has been the editor of REVMAG, assisted by our son, H Alex Harrison, who has been REV’s webmaster since we launched the site in 2003.
With this issue, Ruth is retiring from a long and successful career at REV Magazine. In June 2013, Ruth is receiving her MFA in Creative Writing from Goddard College (also my alma mater for my Masters in Adult Education). Thereafter, Ruth plans to start her next career as an author and teacher. Many of you know Ruth, and I am sure you will join us in wishing her well in her new endeavors.
We will continue publishing and writing for the magazine as in the past. H Alex is stepping in as Editor, effective this issue, and will continue on as REV’s webmaster.
H Alex is our youngest child (of four) and only son. He earned his J.D. from Northeastern University School of Law and B.A. from Sarah Lawrence College. He has worked for REV as webmaster since 2003, and I welcome his vision of REV as we launch a series of new initiatives in 2013 to embrace the digital age.
Many REV readers are former students of mine, which pleases me, as real estate appraisal education is now my primary occupation. I continue to write and update my books as needed, and we have expanded our online education in collaboration with Van Ed (www.vaned.com) in Denver, CO.
My newest seminar, “Basic Home Construction,” has just received AQB approval. It is suitable for both Appraisers and Realtors. It will be available shortly, for both classroom and online presentation. The course is based on my best-selling product knowledge book, HOUSES: The Illustrated Guide to Construction, Design and Systems, which has sold over 500,000 copies since its first publication in 1973. (HOUSES is currently being revised; an updated version will be published in 2013.)
What’s New: Starting with the next issue, REVMAG is launching a free national Appraisal Education Directory. This Directory will list available classroom and online appraisal courses and continuing education seminars on a state-by-state basis, by date. The Directory will be continuously updated based on information we receive from schools and appraisal chapters around the country. The Appraisal Education Directory is the first of its kind, offering a single centralized location for Real Estate Professionals in every state to find basic and continuing ed courses quickly and easily.
REVMAG is poised to grow! We look forward to hearing from you, our readers, about what you want us to focus on, what features you especially enjoy and appreciate, and what's working well for you. Enjoy this latest issue of the magazine! Be sure to sign up for our free email newsletter by entering your email address in the sign up box on the right. It is the easiest way to stay up-to-date regarding everything we offer.
Well wishes and accolades can be sent directly to Ruth (firstname.lastname@example.org); any questions or suggestions should go to our new editor, H Alex Harrison (email@example.com); and I always welcome personal messages and your appraisal questions as well. Please email me at: firstname.lastname@example.org
Just as our former Editor starts on her new path, REVMAG too is growing and changing every day.
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