December 17, 2012
Three Texas counties, including the two that contain Dallas and Houston, were rebuffed on Thursday in their effort to bring a class action on behalf of all Texas counties against Bank of America and Mortgage Electronic Registration Systems Inc. The three counties accused BofA and MERS of using an electronic registry to avoid paying nearly $100 million in mortgage filing fees.
Bank of America in $10 billion mortgage settlement :: WRAL.com
Updated: 5:06 p.m. yesterdayHow screwed up is it when fines for illegal acts results in a tax credit?
Despite the cost of the settlement, Bank of America still expects its earnings for the period to be "modestly positive," aided by a tax credit and an improvement in the valuation of its debt. Analysts are currently forecasting that the bank will report earnings per share of 19 cents, according to estimates compiled by data provider FactSet. Bank of America is scheduled to report earnings Jan. 17.
Bank of America fell 8 cents to $12.01 Monday, after opening slightly higher. The stock more than doubled in 2012, making it the best performer in the 30-member Dow Jones industrial average. It's up 3.7 percent this year.
Fannie Mae and Freddie Mac, which packaged loans into securities and sold them to investors, were effectively nationalized in 2008 when they nearly collapsed under the weight of their mortgage losses.
Bank of America also said that it is selling mortgage servicing rights on about 2 million residential mortgage loans. The loans have an aggregate unpaid principal balance of approximately $306 billion.
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