A conservative news and views blog.

Location: St. Louis, Missouri, United States

Thursday, May 10, 2012

Bank of America's in the news again

Dana Mathewson

Bank of America, that warm-hearted financial giant who recently booted a long-time customer simply because it was in the business of manufacturing firearms-related hardware, has now decided to help a bunch of its customers by reducing the principle on their mortgages.

FTA: A select group of struggling mortgage borrowers are about to get an offer that sounds too good to be true. Executives at Bank of America say they will begin mailing 200,000 letters offering certain customers mortgage principal reduction.

“If people get these things and toss them, they won’t be eligible,” says Ron Sturzenegger, the Bank of America executive charged with providing solutions to borrowers in need of mortgage assistance.

But the offer is real, and eligible borrowers could get as much as $150,000 knocked off the balance of their mortgages. It is all part of the $25 billion settlement reached this year between federal and state agencies and the nation’s five largest mortgage servicers over fraudulent foreclosure document processing (so-called “robo-signing”).
In order to be eligible, a borrower must be 60 days late on the mortgage payment as of Jan. 31, 2012. The borrower has to owe more on the mortgage than the home is currently worth, commonly known as being “underwater” on the mortgage, and the borrower’s loan must either be owned by Bank of America or serviced by Bank of America for an investor who is allowing the modifications.

In order to qualify for the modification, the borrower must answer the letter with full documentation of income, showing that under the terms of the modification they can still make the monthly payment. A borrower with no income would therefore not qualify. A borrower’s current monthly payment must be  more than 25 percent of gross income, and the borrower must show they are unable to afford that.

The "full story" is here:  I put "full story" in quotes because, frankly, I doubt it truly is the full story. When it comes to Bank of America, I don't think we ever get the full story. This is the outfit, if I'm not mistaken, that announced a few years ago that it would provide credit cards for illegal aliens.

Every time I hear the words "Bank of America" I smell an agenda. Am I becoming a conspiracy freak? I don't think so, but with everything going on these days, I think I might be forgiven if I am.

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