is bank insured for a foreclosure
Bank of America sues insurance provider over foreclosure claims
CHARLOTTE, N.C. -- Bank of America Corp. is suing its mortgage insurance company for denying its claims. It's the latest twist in finger-pointing over the mortgage crisis.
The bank says that Old Republic Insurance Co., which Bank of America paid to insure it against losses on potential borrower defaults, is "manufacturing excuses" to deny the bank's claims. In a lawsuit filed last week in district court in Charlotte, it calls Old Republic's conduct "aggravating and outrageous," and says Old Republic is making "unreasonable interpretations" of the requirements in its policies.
Old Republic says it is denying claims where borrowers misrepresented themselves or where the bank is missing paperwork, according to the lawsuit. The bank says that borrowers didn't misrepresent themselves, that Old Republic had ample access to Bank of America's loan books, and that any missing paperwork has "nothing to do" with the claims.
"This is just the next phase of the crisis," said Keith Gumbinger, vice president of HSH Associates, a mortgage analysis firm. He said he hadn't heard of any similar lawsuits but expects more to appear, especially as banks try to offset their losses on mortgages, which could spiral as they're forced to buy back soured loans from Fannie Mae and Freddie Mac. "With all the losses in the past couple of years, everybody's trying to recover their money any way they can."
How to start a Clean Foreclosed Business Cleaning out Foreclosures
START A PROFESSIONAL CLEANING RECESSION PROOF BUSINESS
You will need a business plan and an outline of what your objectives will be for foreclosure cleaning. You must be able to answer the question of why you want to start a cleaning business? You must understand what it will take to get licensed and insured to handle foreclosure cleanup requests from Realtor, mortgage companies, REO's.
3 THINGS YOU SHOULD KNOW BEFORE YOU START A CLEANING BUSINESS
FIRST YOU NEED TO SET UP A WEBSITE SO YOU THAT A PROFESSIONAL WEB PRESENCE ONLINE CAN BE ESTABLISHED RIGHT AWAY, I KNOW YOUR PROBABLY THINKING THIS WILL TAKE TOO MUCH TIME, BUT ACTUALLY IT IS NOT THAT HARD AND THE PAYOFF IS WELL WORTH THE EFFORT.
Bank of America sues its insurance provider over foreclosure claims
Bank of America Corp. is suing its mortgage insurance company for denying its claims. It's the latest twist in finger-pointing over the mortgage crisis.
The bank says that Old Republic Insurance Co., which Bank of America paid to insure it against losses on potential borrower defaults, is "manufacturing excuses" to deny the bank's claims. In a lawsuit filed last week in district court in Charlotte, it calls Old Republic's conduct "aggravating and outrageous," and says Old Republic is making "unreasonable interpretations" of the requirements in its policies.
Old Republic says it is denying claims where borrowers misrepresented themselves or where the bank is missing paperwork, according to the lawsuit. The bank says that borrowers didn't misrepresent themselves, that Old Republic had ample access to Bank of America's loan books, and that any missing paperwork has "nothing to do" with the claims.
"This is just the next phase of the crisis," said Keith Gumbinger, vice president of HSH Associates, a mortgage analysis firm. He said he hadn't heard of any similar lawsuits but expects more to appear, especially as banks try to offset their losses on mortgages, which could spiral as they're forced to buy back soured loans from Fannie Mae and Freddie Mac. "With all the losses in the past couple of years, everybody's trying to recover their money any way they can."
"You kind of knew it would happen sooner or later," added G. Martin Hunter, a Charlotte attorney who represents borrowers in foreclosure cases.
Bank of America says that between 2002 and 2007, it bought insurance from Old Republic to cover potential losses on some $2.2 billion of its loans. The bank would be responsible for losses up to $220 million, or 10 percent of the total, before insurance would kick in.
According to the lawsuit, Old Republic's advertising promised banks that it would free them up to make more loans. When a borrower defaults on an insured loan, "it becomes our expense not yours," Old Republic said, according to the lawsuit. "You have no aggravating foreclosures that waste your staff's time ... which can be better spent generating new business loans," the insurance company told banks, according to the lawsuit.
read more: http://www.tradingmarkets.com/news/stock-alert/bac_bank-of-america-sues-its-insurance-provider-over-foreclosure-claims-1301960.html
