By Dave Kansas
As Dan Fitzpatrick points out in his Journal story, “the bank uncovered these mistakes while preparing less than 1% of the first foreclosure files that it intends to resubmit to the courts in 23 states.” In other words, could just be tip o’ the iceberg.
Wells Fargo could also be in some hot water. Dan notes that shortly after WFC CEO John Stumpf said earlier this month “in our company the affidavit signer and the reviewer are the same team member” a deposition in a court case indicated that WFC does use the dreaded robo-signers that have gotten BofA and others into so much hot water.
The scale of the mortgage foreclosure crisis remains unclear, but the biggest banks, including J.P. Morgan Chase, have varying degrees of exposure. BofA, in large part due to its Countrywide Financial acquisition during the 2008 financial crisis, appears most exposed.
That’s how the market sees it, at least. Bank of America is down about 15% since the crisis broke earlier this month. J.P. Morgan is down about 6% and Wells Fargo is flat.
No comments:
Post a Comment