A new report released by the Inspector General shows evidence of poor management of a $2.87 billion dollar mortgage sale from Fannie Mae and Freddie Mac to Bank of America. The focus of the report is the role of the Federal Housing Finance Agency, the regulatory arm tasked with overseeing government mortgage backers Fannie Mae and Freddie Mac. Late last year, the agency's head decided to sell back a large number of bad mortgages and mortgage backed securities to Bank of America. In theory, forcing a lender to buy back the bad loans it originated seems like a great idea, but in this instance it may have been a sweetheart deal.
In the buyback agreement, Bank of America paid $1.35 million to Freddie Mac and $1.52 billion to Fannie Mae. While $2.87 billion seems like a lot of money, but when you do some simple math, it amounts to only $3,679 per mortgage! Critics of the deal state that both Fannie and Freddie could potentially face billions of dollars of losses from the sale of these loans. The Federal Housing Finance Agency called the buyback and the amounts of the buyback "appropriate and reasonable."
Instead of giving Bank of America the underperforming loans at an extremely cheap price, how about giving the homeowners associated with those loans the right of first refusal to buy their home for the amounts their loans were sold to Bank of America. How many homeowners would have jumped at that opportunity. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to explore what foreclosure options may be available to you.
