Certain directors of Bank of America and Washington Mutual may face an election challenge if they do not provide a satisfactory explanation of what they did "to protect shareholders from excessive mortgage-related risk" in the past two years, according to CtW Investment Group. CtW called for the explanations, and threatened to urge shareholders to vote against the directors, in letters to BoA's Jackie M. Ward, Frank P. Bramble Sr., and Robert L. Tillman and WaMu's Mary Pugh, Stephen E. Frank, and William G. Reed Jr. The six directors sit on the BoA and WaMu committees designated to oversee risk for their respective banks, CtW said. "The meltdown of the U.S. mortgage market is among the worst financial disasters of the past 50 years," said Bill Patterson, executive director of CtW. "At the epicenter of this crisis are Bank of America, Washington Mutual, and four other U.S. banks whose failure to manage mortgage-related risk not only destroyed almost $300 billion in combined shareholder value, but also helped destabilize the global capital markets and precipitate a credit crunch that now threatens to throw the U.S. economy into recession." CtW can be found online at http://www.ctwinvestmentgroup.com.
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Ohio-based Liberty Home Mortgage joins several companies who started using a more modernized FICO credit score for nonconforming mortgage originations recently.
2h ago -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
3h ago -
The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
7h ago -
The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
8h ago -
Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
April 17 -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16