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Bank of America just transfered $72 billion of toxic debt on the taxpayers

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posted on Sep, 17 2011 @ 06:56 AM
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After reading that, I hope you'll participate in the September 17 day of rage against the banks (which is today) in your area....

BofA Sells Part of Mortgage Portfolio to Fannie Mae

Bank of America Corp. has agreed to sell part of its home-loan portfolio to government-controlled housing giant Fannie Mae, as the bank looks to shed assets and pare its exposure to an array of mortgage woes.

The deal, finalized last Friday, will deliver the rights to process and collect payments on a pool of 400,000 loans with an unpaid principal balance of $73 billion, people familiar with the deal said. The purchase price is more than $500 million, one ...

Those bastards just transferred a part of their worthless toxic debt to Fannie Mae (taxpayers) and kept the good stuff... anything toxic they have left will probably be found in the coming weeks and sold to Fannie Mae yet again.

BoA are a bunch of criminals, so are the US government for buying all that toxic debt and putting it on the taxpayers tab...
edit on 17-9-2011 by Vitchilo because: (no reason given)




posted on Sep, 17 2011 @ 07:07 AM
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I would really like to see this day of rage thing get some traction and if it isn't all that, the organisers should regroup and set yet another date and keep promoting it until it does make a big impact.



posted on Sep, 17 2011 @ 07:30 AM
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This is a transparent, legal (?), money laundering.
And what can we do about it?
Nothing.
Stick it! Ya feral underclass



posted on Sep, 17 2011 @ 07:30 AM
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Issa launches probe of Fannie, BofA mortgage servicing deal.


The portfolio includes 400,000 loans with an unpaid principal balance of $73 billon and a delinquency rate of 13%, twice the national average. Fannie reportedly paid $500 million for it.


www.housingwire.com...

Looks like congress is taking a look at this. What they do is anyone's guess
edit on 9/17/2011 by fltcui because: added some info



posted on Sep, 17 2011 @ 07:51 AM
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"Those bastards just transferred a part of their worthless toxic debt to Fannie Mae (taxpayers) and kept the good stuff"

No mate the end game gets near and the only good stuff is physical as in oil,food,gold,silver and not property because they will tax the land that property stands on to the death as the game unfolds so who's property is it anyway.

The whole western banking system is ran and controlled by zionists and they can move money/debt about as much as they like knowing that all fiat paper will reach it's fundemental value of zero at some stage.

Burn a few houses instead of handing the keys back in will soon remind these fraudsters who owns what and remember you being here puts you ahead of the game if you stop talking and take action like i have.



posted on Sep, 17 2011 @ 07:52 AM
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"Those bastards just transferred a part of their worthless toxic debt to Fannie Mae (taxpayers) and kept the good stuff"

No mate the end game gets near and the only good stuff is physical as in oil,food,gold,silver and not property because they will tax the land that property stands on to the death as the game unfolds so who's property is it anyway.

The whole western banking system is ran and controlled by zionists and they can move money/debt about as much as they like knowing that all fiat paper will reach it's fundemental value of zero at some stage.

Burn a few houses instead of handing the keys back in will soon remind these fraudsters who owns what and remember you being here puts you ahead of the game if you stop talking and take action like i have.



posted on Sep, 17 2011 @ 08:05 AM
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I personally think that Fannie or Freddiie owning the mortgages which likely have no clear legal line of ownership is to the benefit of the taxpayers...


BAC/ML/CountryWide should not be able to write off the losses and still be liable for the $500 million it recieved as a long-term gain and be taxed on it...instead of the $5000mil being written off as a Loss, as is the present law


i would rather have an inept GSE (gov't sponsered entity) own the temporarily underwater properties than some elitist, shadow-government cartel of Land & Property Barrons...

Citi and the rest of the blood-banker cartel need shaken up & the present unwholsome arrangement where commercial/Investment Banks are totally tied to a single umbilicle cord must be cut



posted on Sep, 17 2011 @ 10:18 AM
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No probs.

Take over those loans, but it MUST be at the LOWEST PRICE POSSIBLE!!!

Those loans are assets - precious land holdings. Should the gov takes over, it becomes state land and as the state is made of elected representatives, they belong to the Sovereign People - American citizens, instead of banks now.

It is now up to the gov to RESTRUCTURE those loans - for those whom cannot pay up and facing foreclosure, they should be given a grace period of 6 months to do so interest free. Once the 6 mths are up and they still cant pay up, then the land holding will revert to state land, with only 90 yrs leases(in cases of americans) or 30years leases (in cases of foreigners), instead of perpetual holding ownerships.

With such leases, the loans can be greatly reduced, espacially during such times for compassion sake, so that families need not be evicted out to live in the cold streets. Winter is comming. No one must be left behind, least of all, fellow americans in a land of plenty that can be shared amongst all citizens.

And once the leases are up, the gov can re - lease those lands for homes or industry, afterall, the land now belongs to the Sovereign People.



posted on Sep, 17 2011 @ 11:34 AM
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reply to post by Vitchilo
 


$500 million for $73 billion in principle? At an average of 5% yielding 3.65 billion in annual interest?

Doesn't sound like we entirely got the shaft here.. most are probably not performing, or are LTV -10% BUT .... not all underwater loans or nonperforming loans remain that way forever.

IMO its mostly a transfer of underwater loans, creating a negative LTV based on Mark to Market (which would lower the spread inwhich a bank can loan based on reserves.) Moving these liabilities to the US Corp would remove a large constant write down on BoA part, even if they are performing still.

(average principle balance for the package is $182,500)



posted on Sep, 17 2011 @ 12:15 PM
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First the loan, then the backup.
That's from Alice in Wonderland.
All this is just smearing the eyes and times.
What you are now watching is disintegration of the once predominant system.
C'mon, don't get involved so much



posted on Sep, 17 2011 @ 12:41 PM
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reply to post by Vitchilo
 


I said this would happen about a month ago.
No surprise here.


Thanks BofA and American Govt (Run by who again??) for screwing us even more.



posted on Sep, 17 2011 @ 12:53 PM
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Understanding how the mortgage business works first is key to denying ignorance on this thread.

Fannie Mae Bailing Out Bank of America? Not So Much


It is correct that Fannie Mae does not service mortgages; it is incorrect that the purchase of these servicing rights would shift risk to Fannie Mae. Fannie Mae isn't buying the loans, they're buying the servicing rights. The loans are securitized in mortgage-backed securities (MBS), and Fannie Mae already guarantees the loans. Yes, these are high-risk loans, and yes Fannie Mae is already on the hook for them, regardless of who is servicing them. These loans are not on B of A's books, B of A just owned the servicing rights.

...Fannie Mae resold the servicing rights to a specialty servicer or servicers, much like the one we visited during our day in Dallas this week, Nationstar, in order to improve the servicing. As I reported on Wednesday specialty servicers which deal largely in high-risk loans have a much better chance at mitigating losses on these loans, losses which Fannie Mae and the taxpayers will inevitably incur. This is not uncommon, although we don't know how much they sold the rights for.



posted on Sep, 17 2011 @ 12:56 PM
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reply to post by Ferris.Bueller.II
 


Lets not forget the fact that a safe bet of 80% of those loans fall under PMI, and the bank gets to basically double dip on repayment.

YEAH Big Govt and too big to fail BofA.



posted on Sep, 17 2011 @ 01:04 PM
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reply to post by macman
 


Fannie was already 'on the hook' for these loans in the first place, and they are shifting the servicing of these high risk mortgages to company(ies) better suited to service them. Now that B of A no longer owns the servicing rights to these mortgages they will not gain any benefit from them, so I don't know where your 'double dipping' comes into play. Can you please explain that?



posted on Sep, 17 2011 @ 01:15 PM
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Originally posted by Ferris.Bueller.II
reply to post by macman
 


Fannie was already 'on the hook' for these loans in the first place, and they are shifting the servicing of these high risk mortgages to company(ies) better suited to service them. Now that B of A no longer owns the servicing rights to these mortgages they will not gain any benefit from them, so I don't know where your 'double dipping' comes into play. Can you please explain that?

BofA already cooked the books on those, they also already get to collect on the Private Mortgage Insurance regardless on the unloading now, they already benefited.



posted on Sep, 17 2011 @ 01:50 PM
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The US Treasury, which otakes care of Fannie Mae now, perhaps thanks to Paulson's 2008 'conservatorship', isnt gonna pay $500M for BOA's 'toilet papers'. It is an asset worth $73Billion once the capital and interests are fully paid up.

But to BOA, it is indeed 'toilet paper', because they are having a hard time collecting its debts, worse still if attempted to sell it off in today's poor housing market, which will take a far longer time to realize what little money they can obtain, time which they DO NOT have at the moment when face with their own current liquidity problems.

But to the US Treasury, those are NOT 'toilet papers', for they are assets. The Treasury may be low at the moment, but it has time in terms of centuries and a far larger national wealth in terms of GDP backing that BOA doesn't.

Once in its hands, it can either repackage it and sell it as MBS in the secondary markets, back by the gov, or use it as social expenditure to help its soon facing foreclosure citizens with a roof over their heads for limited period of years, even a lifespan if possible, to bring about national stability.



posted on Sep, 17 2011 @ 02:10 PM
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Originally posted by Vitchilo
After reading that, I hope you'll participate in the September 17 day of rage against the banks (which is today) in your area....

BofA Sells Part of Mortgage Portfolio to Fannie Mae

Bank of America Corp. has agreed to sell part of its home-loan portfolio to government-controlled housing giant Fannie Mae, as the bank looks to shed assets and pare its exposure to an array of mortgage woes.

The deal, finalized last Friday, will deliver the rights to process and collect payments on a pool of 400,000 loans with an unpaid principal balance of $73 billion, people familiar with the deal said. The purchase price is more than $500 million, one ...

Those bastards just transferred a part of their worthless toxic debt to Fannie Mae (taxpayers) and kept the good stuff... anything toxic they have left will probably be found in the coming weeks and sold to Fannie Mae yet again.

BoA are a bunch of criminals, so are the US government for buying all that toxic debt and putting it on the taxpayers tab...
edit on 17-9-2011 by Vitchilo because: (no reason given)


Yep, but no one is going to man up and throw a coup so there's really no point in even caring. We all just return to being mindless sheep. Can you say "BAAAAAAAAAAAA"?

Try to take it in the orifice that pleases you all the best because theres no point getting reamed if you arent gonna get something out of it. Personally i'll take it in my ear because it's been itching something fierce today.



posted on Sep, 17 2011 @ 04:39 PM
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Did they or didn't they?

Details are scarce, the entire thing is shrouded in mystery - which makes it STINK of corruption.

Can you imagine? A bank doing something fair?



posted on Sep, 17 2011 @ 05:17 PM
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reply to post by Rockpuck
 


have to agree with you, this move if anything will allow at least part of the housing market to profit the tax payers in the long run... they are high risk high interest loans after all... and if they do default, the loss will be less felt through the markets.



posted on Sep, 17 2011 @ 06:29 PM
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Originally posted by macman
BofA already cooked the books on those, they also already get to collect on the Private Mortgage Insurance regardless on the unloading now, they already benefited.


OK. And where did this information come from? Can you post a reputable source? Thanks.




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