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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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Bank of America in Record $18b Mortgage Settlement

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Bank of America has agrees to a record $18 Billion deal to settle claims it sold risky mortgage securities as safe investments ahead of the 2008 financial crisis.

The bank said it would pay out US$9.65 billion (A$10.37 million) in cash and provide US$7 billion (A$7.5 billion) in relief to consumers affected by losses tied to those securities.

The settlement, with the US Department of Justice, the Securities and Exchange Commission, and other authorities including individual states, resolves a number of civil investigations against the bank and subsidiaries Countrywide Financial and Merrill Lynch, which it took over during the crisis.

But it does not resolve potential criminal cases, especially involving Countrywide, once the country's largest home-loan issuer, and Countrywide officials.

"We believe this settlement, which resolves significant remaining mortgage-related exposures, is in the best interests of our shareholders, and allows us to continue to focus on the future," the bank's chief executive Brian Moynihan said in a statement.

The settlement took aim at hundreds of billions of dollars' worth of low-quality home mortgages pooled into securities that were issued and sold to investors by the bank, Merrill Lynch and Countrywide as high-quality investments.

Authorities pointed out how the residential mortgage-backed securities plummeted in value as the housing market bubble burst in 2006-2007, and many of the mortgages in the bonds, often more than half, soured, causing investors huge losses.

Those losses mounted across major banking institutions in the United States and elsewhere and added heavily to the fall in home values across the country, ultimately snowballing into the financial crisis and the country's deepest economic recession since the 1930s.

"The significance of this settlement lies not just in its size; this agreement is notable because it achieves real accountability for the American people and helps to rectify the harm caused by Bank of America's conduct," said Associate Attorney General Tony West.

The settlement included a group of states which said the bank's actions caused huge losses to their economies and their citizens who lost their houses in part due to the cumulative effect of the market crash.

"Today's settlement attests to the fact that fraud pervaded every level of the RMBS industry," said US Attorney Anne Tompkins for the Western District of North Carolina.

"As we deal with the aftermath of the financial meltdown and rebuild our economy, we will hold accountable firms that contributed to the economic crisis."

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  • Duped
    Duped Friday, 22 August 2014

    Duped

    We here in Australia know that banks used fraud against ordinary people borrowers which is one of the reasons they make these obscene profits. Fraud has pervaded Australian RMBS packages as well so it should be just a matter of time before the Australian government has the integrity and balls to hold the scamming banks to account. Banks cannot and should not profit by fraud and the government has had plenty of warning that they have been using the same tactics here as well, so who is it going to be in government land to get the ball rolling. I will line up for a payout !!!!

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  • setup
    setup Friday, 22 August 2014

    Their Political leaders would have put the pressure on and i guess it's a start in the right direction but it doesn't state clearly if these settlements will place the victims back in the same position that they were in before taking out their loan. A substantial payout is needed to enable them to purchase a home of an equal value to the one which was taken from them. It's over time for the Aussie Pollies to put pressure on our banks to rectify this horrible mess. It's time the Pollies dictated to the banks instead of the banks dictating to them.
    I will be standing in line right next to you Duped waiting for my payout.

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  • brett@sctelco.net.au
    [email protected] Friday, 22 August 2014

    Here it comes, the Banks have got away with this for too long already but now the tide is turning and there is a light beginning to shine at last and will soon become a spotlight on the fraud that the Banks have perpetrated on the Australian public since 2000.

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Guest Friday, 14 August 2020