Bank of America is now sitting atop $64 billion in mortgages at least six months delinquent that have not yet entered the foreclosure process — more than twice the sum of delinquencies held by the bank’s four main competitors combined, Bloomberg News reported.
The loans add up to 3.3 percent of Bank of America’s total loans. By contrast, Wells Fargo has collected $15.3 billion of the same unpaid mortgages, making up less than 1 percent of its total loans. Citigroup and JPMorgan have, respectively, 1.1 percent and less than 1 percent of their loans in this category.
Bank of America’s delinquency stockpile primarily stems from Countrywide Financial, which the bank acquired in 2008. Roughly 85 percent of loans over 60 days delinquent were originally Countrywide mortgages.
As previously reported, Bank of America now has a $1 billion lawsuit on its hands over allegations of defrauding Fannie Mae and Freddie Mac. [Bloomberg] — Zachary Kussin