Bank of America paid out 46 Billion for FRAUD MBS to PIMCO and Fed! MERS Fraud Mortgages!

EDIT - I had Million in the title - it is Billion!

Can we all together say......  "Ahhhh.. Poor Bank of America", they are getting it from all sides!

First people are standing up against the FRAUD Foreclosures and judges are ruling against them left and right.

Pimco and the New York Federal Reserve bank among many other hedge funds and investors of MBS (mortgage backed securities) were demanding their investments back from the fraudulent securities.

Bank of America was fighting it.  Well it seems as of the end of 2010 they had paid 46 BILLION back to PIMCO - N.Y. Fed and others and they still have 10.7 BILLION of Claims against their MBS  filed!  That is HUGE!  Also by those big entities demanding all that money, they pretty much know the game is up and the fraud is coming out in all ways.  They are wanting out before the complete SHTF when it is disclosed ALL the MBS sold by MERS banks are fraud!  One mortgage was put into multiple MBS bonds.

BOA has spent over one Billion more in litigation in 2010 than they had expected to (defending fraud foreclosures).  Looks like they have booked more litigation fees in for this year (2011).

Wells Fargo has also had over 1 Billion in litigation fees in loss to the bank due to MERS fraud foreclosures!

Portions of Article:

Lawyers for borrowers said in court papers that firms including Bank of America also mishandled the servicing of loans, using flawed paperwork in hundreds of thousands of foreclosures.

When banks sell mortgages to investors or bundle them into securities, they typically offer “representations and warranties” in which they guarantee the accuracy of data backing the loans. Examples include borrowers’ income and the appraised worth of the home. If the information is proven wrong, the bank can be forced to buy back the loan or reimburse investors for the lost value. 

The company is in talks with a bondholder group that includes Pimco, BlackRock Inc. and the Federal Reserve Bank of New York, people with knowledge of the matter said last year. The group, which in October pressured the firm to repurchase loans, within 115 deals, amounting to about $46 billion, is now questioning 225 securitizations, Bank of America said last week. 

Lawsuits from other investors are piling up. Allstate Corp., the biggest publicly traded U.S. home and auto insurer, in December sued over mortgage-backed securities. Bond insurers including MBIA Inc. and Ambac Financial Group Inc. have said Countrywide fraudulently induced the carriers to guarantee securities filled with defective mortgages. 

So, lets keep all the banks having to spend money in litigation! STAND UP - DO NOT GET FORECLOSED ON BY FRAUD!

Pimco, New York Fed, part of a consortium of eight Suing Bank of America, Demanding they buy BACK their Mortgage Securities! BUT I have Figured Out - FORECLOSURE is the ONLY Way the Banks Can Cover their Tracks, of their Underwriting FRAUD!

All that wrangling done by the Fed and Treasury in 2008, making One Bank take on another bank's liabilities and business, is now coming to roost.  They tried covering up various illegal practices by having mergers of failing firms.  Bank of America took on Country Wide Mortgage during that time, both being MERS Corp Banks.  So Bank of America got double to triple their exposure to the mortgage Service Foreclosure Fraud of MERS by taking them on.

With all the Mortgage Foreclosure Fraud now coming out, with investors of mortgage securities now DEMANDING their investments BACK from the banks due to the fraud of the underwriting and the foreclosure Fraud!  Remember the Fraud STARTS at the Underwriting and continues from there - that is why there are "paper irregularities"!  The banks may keep foreclosing on people, but at some point it will have to STOP, when enough Judges Rule AGAINST their Right to Foreclose!

I find it very interesting the New York Fed is involved in suing Bank of America for their investments.  When I became aware of the FRAUD about 2 years ago, and researched it, I figured the government and the Fed would not allow the full extent of fraud to come out, due to them having so much exposure of the fraud!

So, it seems to me with the New York Fed joining in on the suit, they may not be able to Stop it after all!  Especially with the whistleblowers coming out, saying each mortgage security was sold about 20 times - not just once!  The banks have Trillions from one property being sold multiple times, thus they Need to Foreclose for the Write Offs and then they don't have to Pay the investors on their investment - because they would have to Pay 20 funds off!

Foreclosure is the ONLY Way they can Cover their Tracks!  They Can Write Off the property - tell the investors "sorry" then resell it and it is ALL Profit!  That is WHY they are Foreclosing on Everyone they can through the MERS and they WILL NOT modify! 

They may be able to convince judges to rule in their favor, But when it comes to the underwriting FRAUD there is no changing what they did.  The New York Fed and Pimco, MUST KNOW that and that is why they want OUT NOW!  A class action happening in Florida includes the shareholders of MERS Corp Banks - that means everyone who has a share in any of the big banks are also being sued!

Portion of Article Linked:

The New York Federal Reserve Bank is part of a consortium of eight large institutional investment firms that is demanding that Bank of America repurchase loans included in mortgage securities.

Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds