Wow...no wonder Bank of America was not too bothered by that $7 BILLION settlement.

[dixiegrrrrl]

These banks get plenty of input into settlements with the U.S. Department of Justice,
and this last big one is no exception.
So BOA had plenty of time and plenty of ways to negotiate the settlement...

which is one of the reasons, perhaps, why BOA started selling off its mortgage servicing biz last year.
3 companies were all too happy to buy mortgage servicing rights: Nationstar, Ocwen and Green Tree.
They do not have to operate under the new strict banking reform regulations that were implemented.

And why is BOA selling off the servicing biz?

Turns out, with this settlement....

Not only will the bank be able to take sizable tax write-offs, but some of the $7 billion earmarked for homeowner relief will actually come from sources other than B of A.

How? In part because many of those mortgages are now being serviced by companies other than Bank of America, which means that those companies will now be responsible for assisting the borrowers of those troubled loans.

http://www.fool.com/investing/general/2014/08/31/4-winners-in-the-big-bank-of-america-corp-settleme.aspx

Yep...the companies that bought the mortgage servicing contracts are liable for a huge hunk of the settlement costs.

[jaysunb]

1. My mortgage got sold to Greentree for servicing.

I've been under siege every since. Now I know why they don't feel obligated to honor our loan modification.

Thanks for posting this. It explains a lot.

[msongs]

2. avoid ocwin if you can nt

[dixiegrrrrl]

3. Problem is...one gets stuck with ever servicer buys the mortgage contract.

Ocwen is busy being sued all over the place, happily, and the Feds are looking closely at it.

[ms.smiler]

4. dixiegrrrrl, it was the transfer of servicing rights on my mortgage to a disreputable

company like Nationstar in 2009 that motivated me to examine my mortgage and property records.

I’m thankful for that “red flag” actually because it led to the discovery of fraud in my mortgage and ultimately fraudulent and null documents filed in the land records.

I think both Nationstar and Ocwen are under investigation in New York. Both companies engage in fraud but that is commonplace with securitized mortgage loans.

My own attorney thinks Nationstar and Ocwen are on their way out because of fraud & liability catching up to them and that new, smaller servicers like Seterus and others will advance to take their place.

It’s just a different party for homeowners to sue when they uncover problems with their mortgages and property Titles.

How nice that the banksters had an exit strategy.