Bank of America is eliminating 30,000 jobs, the largest single cut by a U.S. company this year. The cuts equal about 10% of their workforce.
Our U.S. Government (Fannie, Freddie, & FHA) is currently sitting on 248,000 foreclosed homes, equal to almost a third of all repossessed homes. And they have no idea what to do with them.
Speaking of our U.S. Government, regulators for Fannie Mae and Freddie Mac are planning to sue more than a dozen banks for misrepresenting the quality of mortgage securities created and sold during the height of the housing bubble. Those banks include Chase and Bank of America among others. If you're keeping score, yes, these are the same banks that received billions of dollars from Uncle Sam.
And starting October 1st, FHA will require mortgage servicers to place certain borrowers into trial modifications before collecting a fee for the loan modification. The trial modification will be required for borrowers who miss one mortgage payment twice in the last year, fell 90-days delinquent in the past three years, defaulted within 90 days of the last foreclosure prevention workout, or spend more than 80% of their income on debt repayments.
