BofA Finds Foreclosure Document Errors - 未名空间MITBBS历史存档

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BofA Finds Foreclosure Document Errors

BofA Finds Foreclosure Document Errors# Stock

L*n2010-10-24 07:10

1 楼

this is not looking good for the banks.
http://online.wsj.com/article/SB10001424052702303864404575572662815011760.html?mod=WSJ_hp_LEFTopStories

v*e2010-10-24 07:10

2 楼

(i) it begins to resubmit documents in 102,000 cases.
(ii) discovered errors in 10 to 25 out of the first several hundred
foreclosure cases
(iii) Some of the defects seem relatively minor,
(iv)they haven't uncovered any evidence of wrongful foreclosures.

J*S2010-10-24 07:10

3 楼

如果是准确的
错误率不高，只有千分之2-3.
总共102k.
也就几百个FORCLOSURE有错误，
即使官司输了的话，对于BOA没啥大问题。

S*r2010-10-24 07:10

4 楼

最重要的是已经priced-in了. 也许周一有人也会来用此打压一下BAC.
不过比较令人担心的是securitization. 但千分之2-3也比repurchase request的9%要
低的多.
很难想像foreclosure这么复杂的东西会不missing document. 在银行作过事的人都知
道要collect entire documents有多么难,特别从烂borrower手上.

【在 J**S 的大作中提到】

: 如果是准确的
: 错误率不高，只有千分之2-3.
: 总共102k.
: 也就几百个FORCLOSURE有错误，
: 即使官司输了的话，对于BOA没啥大问题。

L*n2010-10-24 07:10

5 楼

同学们很像没有意识到问题的严重性：
wrongful legal document -> title insurer won't insure the foreclosure
title -> people can't buy homes (foreclosure sale is 30%-50% of total sale)
-> bank profit get hit double side.

v*e2010-10-24 07:10

6 楼

how about last time SEC's fraud allegation against GS. turns out to be
settled at much less amount..
BOA resubmited 102,000 cases but there is zero wrongful foreclosure.

b*r2010-10-24 07:10

7 楼

主要是奥教主摆出一付当官不为民做主，不如回家卖红薯的架势。。
BAC scandal had been cooked as a fight of main street versus wall street
again..

w*s2010-10-24 07:10

8 楼

hehe .. looks buying opportunity is coming

)

【在 L****n 的大作中提到】

: 同学们很像没有意识到问题的严重性：
: wrongful legal document -> title insurer won't insure the foreclosure
: title -> people can't buy homes (foreclosure sale is 30%-50% of total sale)
: -> bank profit get hit double side.

M*M2010-10-24 07:10

9 楼

村长，给个进价。。。

【在 w******s 的大作中提到】

: hehe .. looks buying opportunity is coming
:
: )

S*r2010-10-24 07:10

10 楼

这些foreclosure loan已经是impaired了,所以loss已经recorded at the time the
impairment is discovered. Which is like 2007-09. 所以你看到的07-09巨额亏损很
多就是从这些loan来的.
这对profit没什么太大的影响吧.因为现在主要是看operating income. proceeds from
foreclosure sale直接debt Loan Loss Allowance account. 是个allowance release
. 而且现在房市本身很低,如果以后卖的话价格更好. Bad debt expense就会减少了．
现在对银行业最根本的问题，还是financial reform.　不知道对operating earning的
impact到底有多少．你看BAC的$10 billion goodwill write down就知道有多恐怖了．新的bussiness model不知道会怎样．　对BAC来说，还要面对headline. 你看WFC,JPM就知道房市已经不是主宰银行股价的主要因素了．
如果republican可以repeal financial reform或者water it down. 呵呵，银行股就可以飞了．

)

【在 L****n 的大作中提到】

L*n2010-10-24 07:10

11 楼

割肉的和抄底的对骂又来了，和和

h*r2010-10-24 07:10

12 楼

MY wishful thought that BAC will be up a little bit next week.

【在 L****n 的大作中提到】

: this is not looking good for the banks.
: http://online.wsj.com/article/SB10001424052702303864404575572662815011760.html?mod=WSJ_hp_LEFTopStories

L*n2010-10-24 07:10

13 楼

"这对profit没什么太大的影响吧.因为现在主要是看operating income. proceeds
from
foreclosure sale直接debt Loan Loss Allowance account. 是个allowance release
. 而且现在房市本身很低,如果以后卖的话价格更好. Bad debt expense就会减少了．"
Bank profit still comes from loan underwriting, when their trading is curbed
. Legal title problem can hurt the housing market because no one would buy a
house with questionable title.
again，I'll wait for the bottom to present itself, meanwhile, looking for
breakouts on the tech/retail/Chinese ADR front.

S*r2010-10-24 07:10

14 楼

没有吵架啊．　我们就是讨论．这种headline新闻就是BAC股价最怕的．
我说了很多基本面，你看所有的ibank analyst reports也是差不多的．Barclay,CS,
Citi,MS,John Paulson. 但是BAC实在是面对太多不确定因素了，所以不是一个好的短
期投资．　但此刻割肉，也不明智．我看好银行股长线，其实最喜欢JPM,C.
但挑BAC是因为它被打压的最惨．所以要反弹的话也会最猛．

【在 L****n 的大作中提到】

: 割肉的和抄底的对骂又来了，和和

w*s2010-10-24 07:10

15 楼

already good enough.

【在 M*M 的大作中提到】

: 村长，给个进价。。。

h*r2010-10-24 07:10

16 楼

I totally agree!

【在 w******s 的大作中提到】

: already good enough.

f*u2010-10-24 07:10

17 楼

你理解错了大夫的意思,股版有一句很有名的一句话:割肉的和抄底的对面走过的时候互
骂对方ＳＢ．

【在 S**********r 的大作中提到】

: 没有吵架啊．　我们就是讨论．这种headline新闻就是BAC股价最怕的．
: 我说了很多基本面，你看所有的ibank analyst reports也是差不多的．Barclay,CS,
: Citi,MS,John Paulson. 但是BAC实在是面对太多不确定因素了，所以不是一个好的短
: 期投资．　但此刻割肉，也不明智．我看好银行股长线，其实最喜欢JPM,C.
: 但挑BAC是因为它被打压的最惨．所以要反弹的话也会最猛．

f*42010-10-24 07:10

18 楼

Haha, such is a market.
Sellers can usually find buyers no matter what they sell. Both sides think
they make a good deal when they make the deal, but only time can tell, as
only one side can be right and the other wrong.

【在 f******u 的大作中提到】

: 你理解错了大夫的意思,股版有一句很有名的一句话:割肉的和抄底的对面走过的时候互
: 骂对方ＳＢ．

N*n2010-10-24 07:10

19 楼

Looks like they are setting BAC up to fail.

u*d2010-10-24 07:10

20 楼

还有割肉的？

【在 L****n 的大作中提到】

: 割肉的和抄底的对骂又来了，和和

M*g2010-10-24 07:10

21 楼

要是没有割肉的，你敢大部队挺进？！

【在 u****d 的大作中提到】

: 还有割肉的？

o*o2010-10-24 07:10

22 楼

Banks at BOA's scale can fully insure whatever title you questioned. Think
about the credit rating of a title insurer and boa... There's no way the
borrower can retain the title of a house because of minor glitches in the
forclosure process.

"这对profit没什么太大的影响吧.因为现在主要是看operating income. proceeds
fromforeclosure sale直接debt Loan Lo........
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sent from iPhone App: iReader Mitbbs 3.6 - iPhone Lite

【在 L****n 的大作中提到】

: "这对profit没什么太大的影响吧.因为现在主要是看operating income. proceeds
: from
: foreclosure sale直接debt Loan Loss Allowance account. 是个allowance release
: . 而且现在房市本身很低,如果以后卖的话价格更好. Bad debt expense就会减少了．"
: Bank profit still comes from loan underwriting, when their trading is curbed
: . Legal title problem can hurt the housing market because no one would buy a
: house with questionable title.
: again，I'll wait for the bottom to present itself, meanwhile, looking for
: breakouts on the tech/retail/Chinese ADR front.

L*n2010-10-24 07:10

23 楼

晕， after a foreclosure, bank are the owner/seller of the property, they
don't do title insurance.

【在 o**o 的大作中提到】

: Banks at BOA's scale can fully insure whatever title you questioned. Think
: about the credit rating of a title insurer and boa... There's no way the
: borrower can retain the title of a house because of minor glitches in the
: forclosure process.
:
: "这对profit没什么太大的影响吧.因为现在主要是看operating income. proceeds
: fromforeclosure sale直接debt Loan Lo........
: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
: Sent from iPhone App: iReader Mitbbs 3.6 - iPhone Lite

s*s2010-10-24 07:10

24 楼

The number of foreclosure in error is not the main issue.
The problem is the impact of these errors. For example, banks sold these
housing backed securities to investors, and after this financial crisis,
many investors took the loss and moved on.
Now, these investors found out that these securities had flaws in it, and
these flaws were against the law in many states.
So there are a lot of law suits now that investors seek money from banks for
their loss, and state governments are also investigating.

o*o2010-10-24 07:10

25 楼

Investors don't sue banks for foreclosures. In most cases they would have
lost more if the long delinquent loans had not been foreclosed.
Investors buy toxic Mbs at low price with the intention to sue the
originator, so that the toxic bonds they hold may be paid off at par. Its
going to be a potential problem for boa since it inherited liabilities from
the notorious countrywide, which was the mother of many fraudulent loans.
Individual borrowers don't have the necessary legal power (read money,
otherwise they wouldn't be forced out in the first place) to fight big banks
like boa. Once the election season is over, AGs and senators will lose
interest on these cases too.

The number of foreclosure in error is not the main issue.The problem is the
impact of th........
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sent from iPhone App: iReader Mitbbs 3.6 - iPhone Lite

【在 L****n 的大作中提到】

:
: 晕， after a foreclosure, bank are the owner/seller of the property, they
: don't do title insurance.

s*s2010-10-24 07:10

26 楼

I think you are talking about the investors after financial crisis. I am
talking about the investors during 2004-2007 who bought these housing backed
securities.

from
banks

【在 o**o 的大作中提到】

: Investors don't sue banks for foreclosures. In most cases they would have
: lost more if the long delinquent loans had not been foreclosed.
: Investors buy toxic Mbs at low price with the intention to sue the
: originator, so that the toxic bonds they hold may be paid off at par. Its
: going to be a potential problem for boa since it inherited liabilities from
: the notorious countrywide, which was the mother of many fraudulent loans.
: Individual borrowers don't have the necessary legal power (read money,
: otherwise they wouldn't be forced out in the first place) to fight big banks
: like boa. Once the election season is over, AGs and senators will lose
: interest on these cases too.