Monday, October 18, 2010

Houston, We Have a Problem...

The day Bank of America boldly announced it would resume foreclosures in the 23 judicial states also had this:

HOUSTON, Oct. 18 /PRNewswire/ --Today, the holders of over 25% of the Voting Rights in more than $47 billion of Countrywide-issued RMBS sent a Notice of Non-Performance (Notice) to Countrywide Home Loan Servicing, as Master Servicer ("Countrywide Servicing"), and to Bank of New York, as Trustee, identifying specific covenants in 115 Pooling and Servicing Agreements (PSAs) that the Holders allege Countrywide Servicing has failed to perform.

What do they demand?

the repurchase of loans that were originated in violation of underwriting guidelines, and compelling the sellers of ineligible or predatory mortgages to bear the costs of modifying them for homeowners or repurchasing them from the Trusts' collateral pools
If (big IF) those mortgages have indeed been in the Trust's collateral all these years (i.e. notes properly endorsed, assigned and delivered within 90 days of the close of the Pooling and Servicing Agreements), that is.

Maybe Bank of America announcement was a bit premature.

For more, go read the post at Market Ticker.

(h/t 'erickbacardi')


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