A $106 Billion Tab For Mortgage Buybacks
U.S. banks might be facing $54 billion to $106 billion in costs as an increased number of investors demand that issuers of mortgage backed securities (MBS) repurchase faulty loans, according to a November 29, 2010 Bloomberg report. Paul Miller with FBR Capital Markets had projected losses of $44 billion to $91 billion in September. He said the new numbers reflected recent disclosures about possible losses, which likely involves the recent news about the Coutrywide mortgage mess revealed in deposition testimony involving a New Jersey foreclosure.
The major players involved in this include JP Morgan, Citigroup, Bank of America and Wells Fargo, who will likely account for 40% of the industry losses.
If you have suffered losses from investing in mortgage backed securities (MBS), contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.