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Bank of America (BOA) Accused by US Gov’t of Investor Fraud

August 7, 2013 By Deborah Cobing Leave a Comment

WASHINGTON – The United States government has filed today two civil charges versus the Bank of America (BOA), accusing the financial institution of mortgage-supported fraud in the bank’s sale of around $850 million in residential mortgage securities.

The filing of the charges is the newest financial and legal pain for the country’s second biggest bank that has already given the nod to pay more than $45 billion in cash to put an end to conflicts as a result of the global financial turmoil of 2008.

Legal troubles

As majority of the legal debacles that BOA is being hounded and has already dealt with is tied to the bank’s purchase of Merrill Lynch and Countrywide, the latest charges it is facing are linked to mortgages that the US government claims were securitized and sold by the legacy division of BOA.

The RMBS, or residential mortgage backed securities, at issue were of higher quality level in terms of credit depth compared to the sub-prime mortgage bonds to about January of 2008, the US government bared, several weeks following the report by many banks at Wall Street of billions worth of write downs on holding of such securities.

Meanwhile, the Securities and Exchange Commission and the Department of Justice have filed a similar charge in North Carolina’s district court that accuses BOA of committing false statements and for failing to disclose key details regarding the mortgages that cover the sale of mortgage securities to investors some five years ago.

Bank of America slashing interest rates for all its Mortgage loans

May 25, 2013 By James Faulkner Leave a Comment

Whether you are buying your first home or your vacation home or just investing in Real estate, you have good news. One of the country’s largest lenders, The Bank of America (NYSE:BAC) has slashed the interest rates of all its mortgage loans, except Re-financing options. After the acquisition of Countrywide Financial for $4.1 billion five years ago, BoA Home loans has been raring to compete with its primary competitors like Wells Fargo, J.P. Morgan and Citibank through the mere figures.

In such a daring drive, BofA has now been quoting a mere 3.75% interest on its benchmark 30 year fixed rate mortgage. Today’s announcements declared such cut-throat competitive measures by BofA to usher in some long awaited movement in the American debt market. Along with an Annual Percentage Rate (APR) of 3.902% and discount points of upto 1.033, the 30-year fixed-ratemortgage is sure to remain as the most popular choice of Housing finance for the common American.
The opening rate of the 15-year fixed rate mortgage is also now reduced to3%, while yielding an APR of3.284% anddiscount points of 1.15.

This is the choice of the comparatively more affluent and experienced borrowers who want to ease off the interest burden quickly with less interest paid. However, people who like a bit of risk and are mostly looking for finance while investing in Real-estate choose the 5/1 Adjustable Rate Mortgages, the interest rates of which were also reduced to 2.375% while yielding a 2.923% APR and rewarding a cool 0.957discount points. Besides these most popular three types of mortgages, the 7 year ARM deals now comes at a mere 2.75% interest andan APR of 2.955%. Even the interests on 10 year Adjustable Rate Mortgages are now only 3.250% with an APR of 3.241%.

All these figures, sourced from the BofA website are subject to variation based upon market activity as Mortgage rates fluctuate everyday depending on the index to which they’re tied. So it’s advised that you consult any of the 5,873BofAMortgage Retail offices, as you get even better deals based upon your area of property and down payment amount.

Bank of America Reported with Higher Mortgage Rates, Leading Dow, (NYSE:BAC RISES)

May 15, 2013 By Deborah Cobing Leave a Comment

Bank of America is reported to have higher mortgage interest rates. The leading financial institution in the United States has shown mixed figures with a report of being the leading advancer among the Dow industrials.

Bank of America is reported with 30-year loan interest rates listed at 3.625 percent and an annual percentage rate of 3.732 percent. The short-term 15 year fixed-rate mortgage interest rates are shown to be starting at 3.000 percent, which yields 3.244 percent APR.

The bank has 5-year adjustable rate mortgage interest rates standing at 2.625 percent with a starting 3.015 percent APR.

At Bank of America, there is 3.750 percent in standard 30-year refinance loans and a 3.911 percent APR. The bank has also popular 15-year refinance fixed rate loan interest rates that start at 3.000 percent that yields an APR of 3.289%. Bank of America’s 5-year refinance ARM interest rates are being offered for 2.625 percent with a starting APR of 3.010 percent.

Coming out at 2.875 percent, the 7-year refinance adjustable rate mortgages at Bank of America start with an APR of 3.079 percent. With an APR starting at 3.359 percent, the 10-year refi deals on ARM are quoted at 3.375 percent.

Meanwhile, stocks at Bank of America (NYSE: BAC) have been swinging sharply higher to pull the blue-chip index. It was reportedly up more than 2 percent in financial stocks, making it the biggest gainer in the Dow Jones Industrial Average. It was followed by J P Morgan Chase & Co. with nearly 1.2 percent increase in the Dow.

With its 2.3 percent increase, Bank of America added it to the 77 percent gain it had over the past year. The bank continues to benefit from its cost cutting measures and the efforts of its wealth management unit despite certain lawsuits.

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