Banking

April 29, 2014

Bank Watch roundup: Foreclosure errors may have been higher than expected

A new GAO report says that error rates on foreclosures set to be evaluated in the 2012 independent foreclosure review that was cut short were much higher than expected.

BANKS MAY HAVE BEEN ERRING IN FORECLOSURES MORE THAN THOUGHT: A new GAO report says that error rates on foreclosures set to be evaluated in the 2012 independent foreclosure review that was cut short were much higher than expected, The New York Times reports. Bank of America ended up paying $2.9 billion in cash and relief in the settlement that ended the review, and Wells paid $2 billion.

SUPREME COURT TO CONSIDER COUNTRYWIDE CASE: The highest court in the land will hear a case on how a borrower can rescind a mortgage loan before all the legal disclosures are sent to them, the Wall Street Journal reports. The case stems from a 2007 loan made by Countrywide, which Bank of America later bought.

GOODBYE FOR NOW TO BANK OF AMERICA DIVIDEND INCREASE: After disclosing that it has miscalculated debt instruments inherited from Merrill Lynch for years, Bank of America has suspended its dividend increase and will be forced to resubmit its capital plan. The Charlotte bank had planned to start declaring a 5 cent per share quarterly dividend and buy back $4 billion in shares. That's on hold, and the ultimate capital return will almost certainly be lower.

WHAT THEY'RE SAYING: The business media is calling the blunder everything from a "serious blow" to a "disgrace."

BBVA COMPASS ENTERS CHARLOTTE: The Alabama bank is opening up a commercial lending office in the city. They're going to take up the fourth floor of 330 S. Tryon St.

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