Bank of America Holds $64 Billion in Delinquent Mortgages
Mortgage News > Bank of America Holds $64 Billion in Delinquent Mortgages
Bank of America currently holds $64 billion in mortgages that are six months behind in payments yet have failed to enter into foreclosure.
The bulk of the delinquent mortgages, which account for 3.3 percent of all the mortgages it services, came into Bank of America’s portfolio when the bank acquired Countrywide Financial Corp. in 2008.
It has already cost BofA roughly $40 billion to troubleshoot the loans inherited by Countrywide and still “faces a federal lawsuit seeking $1 billion over a program to allegedly sell defective mortgages, called Hustle” according to Bloomberg.
The large load of delinquent loans can account for the reputation of “delaying loan workouts” that Bank of America has attained.