B of A paid $1.3 billion in foreclosure-delay penalties

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.

Click here for the full story on Housing Wire.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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