Posted on Sunday, May 24, 2009
Several months into we're getting a glimpse of how lawsuits against subprime lenders may play out. Bank of America is stepping up for Countrywide. Perhaps the worst hit loans were Countrywide's risky negative amortization products. 42 states have signed on to the settlement estimated to impact 390K loans at an original estimate of $8.4 billion;
* Assistance has been offered to 100K borrowers. So far 50K borrowers have been modified, a total of $823 million.
* Average monthly payment savings has been $195.
* 93% are subprime loans
* $22.4 million in relocation assistance has been provided to 11k folks in instances where homeownership was not sustainable.
Lawsuits from the investor side are pending in particular based on the allegation that Bank of America, a 2% owner in the loans, is shifting losses to investors.
Honestly, too little too late