Are they risky loans or were they deceptively inflated appraisals, systematically patented sales techniques made with false promises to the homeowner of maintaining good credit for a year to get to a lower 30-year interest rate knowing all along that the refinancing had come to an end and default was imminent. Insured defaults were necessary in order to keep the bond liquid for pension funds investors. Banks knowingly wrote more loans than they could legally hold by using pretender-lenders who had planned exit strategies; insurance companies that disingenuously cried harm when they had agreed to a no recourse deal so that the banks could confiscate the properties and continue the ruse by reselling it over and over in an intentional default scheme. All the while families were displaced, torn apart, and emotionally stressed beyond belief.
The fact that they sue each other is ludicrous because they were all insiders. Pension fund agents and managers knew what was going on – they were buying mortgage loans and promised liquidity – a necessity for their investment plans. Mortgages should never be considered liquid. They are intended to be long term. Banks knew that mortgages required flexibility when special circumstances developed. The traditional mortgage had been trashed and replaced by a psychotic industry of delusional narsarcistic thieves. Yes, thieves. They knowingly stole money from pension funds and homeowners under false pretenses – the greatest robbery of the last 2 centuries.
Ambac Assurance Corp. (AMBC) sued Bank of America(BAC) in order to recoup hundreds of millions of dollars that it lost during the financial crisis from insuring roughly $1.68 billion of securities backed at least in part by risky mortgages from countrywide, Reuters said.
In a complaint filed on Tuesday in a New York state court in Manhattan, Ambac accused Countrywide of lying about how well it underwrote so-called “pay option adjustable-rate mortgage negative amortization” loans that backed the securities.
The securities were issued in eight transactions between 2005 and 2007, Ambac said.
Bank of America announced in August a $16.65 billion settlement agreement with the U.S. Department of Justice, certain federal agencies and six states to resolve claims over toxic residential mortgage-backed securities, collateralized debt obligations and an origination release on residential mortgage loans sold to Fannie Mae and Freddie Mac.
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