Nov 08, 2011
B of A paid $1.3 billion in foreclosure-delay penalties
08 Nov 2011
Posted by Andrew Kantor
Bank of America disclosed that it has paid $1.3 billion in penalties to Fannie Mae and Freddie Mac this year for delays in foreclosure filings. (According to Housing Wire, F&F “charge servicers for taking too long to complete the foreclosure process under specific, state-by-state guidelines.”)
So why were the foreclosures delayed? Because foreclosures across the country were stopped in October 2010 when lenders’ robo-signing fraud came to light. Lenders who had forged signatures and falsified documents had to go back and fix things, which obviously slowed the entire process — and resulted in penalties from the GSEs.