What We're Hearing

Is it really any surprise that Bank of America will attempt to cut the principal amount on 45,000 troubled mortgages it inherited courtesy of Countrywide Financial? (Should we call this project, "Angelo's Ashes"?) Ten days ago BoA spokesman Rick Simon told National Mortgage News' Brian Collins that principal reductions were a done deal -- especially on payment option ARMs. Of course, the bank is dealing with some nasty mortgage abuse lawsuits brought against Countrywide by the states so this makes the bank look like a good corporate citizen for at least trying principal reductions. But the big question is this: will other mega servicers with legacy POA loans follow suit? Stay tuned. Meanwhile, it appears mortgage bankers are on the hook for overtime pay for inhouse loan officers. This new development is now on the NMN website...