by Bill McBride on 10/24/2012 09:01:00 PM
Wednesday, October 24, 2012
From the NY Times Dealbook: Federal Prosecutors Sue Bank of America Over Mortgage Program
In a civil complaint that seeks to collect $1 billion from the bank, the Justice Department took aim at a home loan program known as the “hustle,” a venture that has become emblematic of the risk-fueled mortgage bubble.Thursday:
Bank of America inherited the “hustle” home loan program with its purchase of Countrywide Financial in 2008. Prosecutors say the effort, kept alive by Bank of America through 2009, was intended to churn out mortgages at a rapid pace without proper checks on wrongdoing. The bank then sold the “defective” loans without warning to Fannie Mae and Freddie Mac, the government-controlled housing giants, which were stuck with heavy losses and a glut of foreclosed properties.
“The fraudulent conduct alleged in today’s complaint was spectacularly brazen in scope,” Preet Bharara, the United States attorney in Manhattan, said in a statement.
• At 8:30 AM ET, the initial weekly unemployment claims report will be released. The consensus is for claims to decrease to 372 thousand from 388 thousand..
• Also at 8:30 AM, the Durable Goods Orders for September will be released by the Census Bureau. The consensus is for a 7.0% decrease in durable goods orders.
• Also at 8:30 AM, the Chicago Fed National Activity Index for September will be released. This is a composite index of other data.
• At 10:00 AM, the NAR will release the Pending Home Sales Index for September. The consensus is for a 2.5% increase in the index.
• At 11:00 AM, the Kansas City Fed regional Manufacturing Survey for October will be released. The consensus is for an a reading of 4, up from 2 in September (above zero is expansion).
Another question for the October economic prediction contest (Note: You can now use Facebook, Twitter, or OpenID to log in).
• New Home Sales at 389,000 SAAR in September
• New Home Sales and Distressing Gap
• New Home Sales graphs
Posted by Bill McBride on 10/24/2012 09:01:00 PM