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Bank of America (BAC) Selling Billions More In Mortgages

01/08/13 by  
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Stocks continued moving downward in today’s trading. Earnings season is set to begin and analysts are expecting a slower-than-hoped for 2.8% growth for the quarter. If earnings come in better than expected it could cause a near-term pickup in the market, Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management, said. He continued to say “I think there’s still ample areas for concern,” such as policy worries in Washington and uneven economic activity.

AIG (NYSE:AIG) was one of the insurer’s that was bailed out by the government back in 2008 with a total of $182 billion in funds. News was released Tuesday morning that they may join a lawsuit against the government, after saying that the terms of the deal were unfair. The Federal Reserve Bank, who issued the bailout, said that had AIG felt the terms were unfair they could have chosen to go bankrupt.  This news comes as a shock after the company recently used a high-profile ad campaign to thank the American public for the bailout. Mark Williams, a former Federal Reserve bank examiner, said “If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life.” Williams continued to say “AIG needs to look at only itself as a company that recklessly engaged in excessive risk taking. Government action gave AIG a second life.”

Bank of America (NYSE:BAC) announced early Tuesday that they would be selling collection rights on another $100 billion of mortgages. This announcement comes after the bank said yesterday that it would be selling $300 billion of it’s mortgage servicing rights. They are expected to announce more of these MSR sales in the coming weeks. Dan Frahm, a Bank of America spokesman, declined to comment on the specific transactions. He did say that the company has been selling these rights for years. “By reducing the size of our portfolio, we improve customer service capacity and resolve legacy mortgage issues and reduce risk in our portfolio.”

Newcastle Investment (NYSE:NCT) was trading up over 2.6% on Tuesday morning after tcompany announced that it priced its public offering of common stock at $9.35 per share. Along with this news, the company also increased their size offering from 40 million to 50 million that will total gross proceeds of $467.5 million.

Nokia Corporation (NYSE:NOK) was trading down over 4.5%. The company had teamed up with Microsoft to try and make some headway in the smart phone market dominated by Apple and Samsung. The current windows phone only has about 3% of the market share. Nokia CEO, Stephen Elop, said “anything is possible” for their next move. They plan on exploring other alternatives and options. “In the current ecosystem wars we are using Windows Phone as our weapon. We are always thinking about what’s coming next… Today we are committed and satisfied with Microsoft, but anything is possible.”

All the best,

Jack Aubrey

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Comments

2 Comments on "Bank of America (BAC) Selling Billions More In Mortgages"

  1. Tony on Fri, 17th May 2013 6:34 PM 

    BOA has lied about our payments and attempted to foreclose. Once I showed proof that payments were coming in and speaking with an executive with BOA they suddenly found the payments and applied to my account. That was an incident 7 years ago. Recently we asked for a loan modification with BOA and was given a rep to contact as we applied. We applied also for a modification through our primary mortgage holder citi. We were behind on both 2 months on Citi and 2 on BOA. We were declined by BOA and told that if we were approved by Citi BOA would then follow suit. I attempted to contact rep because we were approved for a modification through Citi and we also had not received any statements from BOA and to question should we send payments to what address and what was next step now that we were approved for the modification. The rep Harold Green never answered his voicemails and BOA said there was another number to call. We are on our last trial payment with citi and have been given five diffeerent numbers to contact a rep. Main reps would transfer us stating they could not help. We would get another number and no MR. Green. Three months later another rep said our loan was not charged off but was being handles by that department. Again I asked where to send a payment and who is my rep, given a new number and again the number asked for an extention number which we were never given and after relooping would hang up. Received a letter from BOA saying due to non payment our loan was charged off. Immediately called last number we had for BOA and wheo listen to whatn it said enter extention I put in 5 random numbers and was told to hold on, got relooped and a woman answered. Heater stated that our account was charged off and as she refused to listen to what I said we were told to do and why wouldn’t someone contact us instead of charging the account off? I was told you eceived a statement recently and I said yes, the first one in 5 months. Heather said I will set up payments for you, Mr. Green can no longer help you. If you don’t waant to hear your options we will send this to an attorney or collectiion agency. I know BOA is large but are they doing this to others and writing off accounts and turning around and setting up payments to collect funds they just wrote off?. We set up 3 payments and she said she would call in 2 months to set up the next three. I know BOA is large but are they did not communicate with us for months No Calls of Letters Just the one saying Charge off. what should we do?

  2. Frank McMillin on Fri, 24th May 2013 7:30 PM 

    Hi,
    I have received the Wall Street Elite and Bourbon and Bayonets for quite awhile but within the last few weeks it has stopped coming. I would like to continue receiving them. Thanks. Frank


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