Finally, good news in the bank sector, (BCA), Bank of America is getting their mortgage issues problems out of the way, so to speak, by making a change which involves splitting the bad from the good mortgages. It’s going to set up a legacy servicing for dealing with the bad mortgages crises left overs from 2008 financial disaster in the banking sector. This approach might just ignite the banking sector that has been lingering since the meltdown.
Terry Laughlin, executive responsible for the (BCA) legacy asset servicing, explains that by creating this new service, it will better enable Bank of America to focus on distress mortgages and devote more resource loans, making sure residential house owners get the modification they deserve in a timely manner.
Terry Laughin says; if we (Bank of America), have an obligation to purchase these loans, we will stand up to this obligation, but having said that, he mentioned that it’s not as big as investors and a lot of the blogs might suggest.
He also specifies, although this issue concerns mostly every bank in the USA and worldwide, the focus is only driven on Bank of America delinquent loans.
Reporting the bad as well as the good loans, will give us a better indication of how the mortgage situation is standing throughout the USA.
This news might just help to kick start the sluggish home business industry that has been tumbling since the crisis.
My hunch is, (BCA) stock will most probably get a boost out of this news next week amid all the earning reports.
By the way, here’s one or two companies, that should be kept on monitor. reporting next week, Open Table (OPEN), Akamai (AKAM),Chipotle Mexican Grill (CMG).