Category Archives: allocation of loss

Barron’s Article Pulls No Punches in Assessing Bank Putback Liability

Posted on November 22, 2010 by Isaac Gradman

If you’re looking for a great primer on the latest developments in the legal saga over who will ultimately bear the losses for the detritus that passed as subprime and Alt-A mortgage loans from 2004 to 2007, check out this … Continue reading →

Posted in allocation of loss, Barron's, Clayton Holdings, Lehman Brothers, loan files, private label MBS, rep and warranty, repurchase, responsibility, stated income, too big to fail, underwriting practices | 2 Comments

Countrywide Loan Modification Settlement Becomes Issue In Connecticut Senatorial Race

Posted on November 2, 2010 by Isaac Gradman

The ramifications of the Mortgage Crisis are being felt on this Election Day 2010, as the issues of foreclosures, loan modifications and MBS-related losses to pensionholders’ portfolios are being brought to the forefront in some key political battles.  As a … Continue reading →

Posted in allocation of loss, Attorneys General, BofA, Christopher Dodd (D-CT), Countrywide, global settlement, Linda McMahon, loan modifications, political ads, Richard Blumenthal, senate races, The Nation | 2 Comments

Federal Short Sale Programs Will Face Same Shortcoming As Workouts: Too Much Carrot, Not Enough Stick

Posted on May 11, 2010 by Isaac Gradman

With government-backed loan modification programs showing abysmal results, Washington has turned to short sales as the flavor of the week to ameliorate the foreclosure crisis.  Pursuant to the Treasury Department’s Home Affordable Foreclosure Alternatives (HAFA) initiative, effective April 5, loan … Continue reading →

Posted in allocation of loss, California Lawyer, conflicts of interest, foreclosure rate, HAFA, incentives, loan modifications, servicers, short-selling, Treasury | 1 Comment

BlackRock Puts Pressure On Banks To Absorb Losses

Posted on April 8, 2010 by Isaac Gradman

BlackRock, a major asset management firm and one of the largest investors in U.S. mortgage bonds, announced last week that banks would have to absorb the losses on their holdings in second-lien mortgages before it would resume purchasing “private-label” mortgage … Continue reading →

Posted in allocation of loss, BlackRock, conflicts of interest, investors, irresponsible lending, junior liens, loan modifications, MBS, securities, toxic assets | 1 Comment

In Letter to Bank Regulators, Senators Reverse Course

Posted on July 17, 2009 by Isaac Gradman

Loan servicers’ star may be quickly fading in Washington. In a stunning reversal of course, Representative Barney Frank (D-Mass.), Chairman of the House of Representatives Committee on Financial Services, and Senator Christopher Dodd (D-Conn.), Chairman of the Senate Committee on … Continue reading →

Posted in allocation of loss, Barney Frank (D-MA), BofA, Christopher Dodd (D-CT), Helping Families Save Homes, Hope For Homeowners, investors, loan modifications, Servicer Safe Harbor, William Frey | Leave a comment