Countrywide’s Mortgage Documentation Becomes Bank Of America’s Problem
Testimony elicited in a New Jersey foreclosure case revealed that it was “customary for Countrywide to maintain possession of the original note and related documents”, according to a report by Kate Berry for the American Banker. This means that Countrywide Financial, now owned by Bank of America, appears not to have properly transferred necessary mortgage documents when it sold loans to other banks, which then in turn created residential mortgage backed securities (RMBS) from the loans. If the mortgage backed securities turn out not to be “mortgage backed”, then investors who purchased the securities could be able to force Bank of America to buy the securities back. Additionally, if the titles to the homes in foreclosure were improperly created, banks will find it harder to foreclose and selling the properties will be difficult.
If you have suffered losses in RMBS, contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.