BOA CORRECTS PRINCIPAL – $533K – IN BORROWER SETTLEMENT FOR BOA EXEC

Bank of America Takes $533,500 Loss on Barbara Desoer’s Home

Today, March 11, 2011, 6 hours ago | ceramic catGo to full article
FROM: http://blogs.wsj.com/deals/2011/03/1…_share_twitterBank of America Corp. is fighting an effort to force U.S. banks to reduce the amount some borrowers owe on their mortgage. But property records show that the bank was willing to take one heck of a hit when mortgage chief Barbara Desoer unloaded her Charlotte N.C., home in 2009 as part of a move to California.

Desoer and her husband Marc sold their 4,455-square-foot house in Charlotte’s exclusive Eastover neighborhood to relocation company Weichert Relocation Resources Inc. for $1.46 million on May 6, 2009, according to county property records.

Eastover is a highly sought-after address in Charlotte, can be seen from the giant bank’s downtown headquarters and is home to former Bank of America Chief Executive Hugh McColl and other bank executives.

The relocation company’s services were part of a larger benefits package that Desoer got so she could oversee the purchase of troubled mortgage lender Countrywide Financial.

Bank of America also paid out $1.5 million for costs related to the purchase of her new home in California and $1.1 million in tax costs, according to a 2009 securities filing.

The fine print included a promise by Bank of America to eat any losses if Desoer’s house in Charlotte was sold at a lower price.

On Nov. 20, 2009, Weichert sold it for $930,500–a 36% decline in just six months, property records show. Bank of America’s loss: roughly $533,500.

“It’s simply unfair and inaccurate to compare this benefit to principal reduction for delinquent mortgage customers,” Bank of America said in a statement. “Relocation benefits are customary and competitively necessary arrangements for most major companies when executives are asked to relocate with their family to another area of the country to oversee critical businesses.”

The company hasn’t disclosed the size of the bath it took on Desoer’s house. In the 2009 securities filing, Bank of America said the sale happened in December 2008 and was “based on the average of the appraised values of the residence as determined by two independent appraisal services.”

Change to Win, which is affiliated with the Service Employees International Union and owns shares in Bank of America, says Desoer’s perk is a big reason why the company should be forced to ban such home-loss subsidies for executives.

The group is asking shareholders to eliminate the policy at the bank’s annual meeting in May, telling directors that such a payment “insulates a narrow set of executives from the economic facts of life even while Bank of America’s own customers struggle to pay their mortgages as a result of the housing market collapse and broader financial crisis.”

The SEC ruled in a March 4 letter that the proposal can remain on the proxy, despite efforts by the bank to remove it. The proposal, the SEC said, “focuses on a significant policy issue of senior executive compensation.”

15 Responses

  1. Don’t be surprised if the Internet goes down Monday lol

  2. And, what about if you are a lawmaker — modifications being put through. SEE BELOW

    http://www.dailyfinance.com/story/real-estate/bofa-offers-to-help-fix-mortgages-if-youre-a-state-legislator/19876599/

  3. Anyone who says BAC is the only one doing anything about bad loans has to be employed by them.

    Anywhere you want to look , BAC has, absolutely, the worst record for modifications approved in ANY of the programs available out there.

    They have illegally obtained and converted tax-payer dollars under not one but two government programs and then refused to distribute those funds in accordance with leagally binding contracts with the people of this country.

    If this isn’t bad enough, BAC has and will continue to agree to million if not billion dollar settlements (Consent Decree’s) with every State and Federal entity that brings charges against them in order to avoid having to litigate the allegations in open court.

    But let a lowly, destitute, disenfranchised, cheated and abused AMERICAN CITIZEN try and take these people to court and BAC will spare no expense in producing falsified documents, expert witnesses and the best guns for hire to take its defense as far as they have to in order to prevent even one person from getting satisfaction through our judicial system.

    Then factor in how it is that BAC and most of the other big banks never follow through with the commitments made in those consent decrees, ie., Principal Reduction for at risk Homeowners; Compensation for moving expenses for those that can’t or don’t want to remain in thier homes; Reasonable home loan modification programs, provided in a transparent and timely manner, and so on, and so on.

    So the Consent Decrees actually cost them very little and the respective powers to be seem powerless or unwilling to enforce these agreements. Except Arizona and Nevada, and I praise these two State’s Attorneys General for taking these common criminals to task for their crimes.

    So don’t try and push any of that poor old BAC spin crap on those of us here with even the slightest bit of intellignece. It doesn’t fly, it has never flown, hell, it never even had wings in the first place.

    BAC spent well over $2 million dollars, probably a lot more if the truth be known, when it sent 60 specialized contractors and employees out to California to go over every inch of Countrywide’s operation before it closed the deal to merge the two.

    They knew exactly what they were getting into and chose to proceed despite the facts and before this is all over BAC may find that it is “To Big to Survive”.

    From one who knows first hand.

    53 months in this fight and still standing………

  4. Let’s hope there’s some good dirt in here. Usually, I look forward to the weekend, time to relax and wind down. However, this weeked I just can’t wait till Monday…good thing the clocks spring forward an hour…one less hour on tenterhooks…

    http://www.zerohedge.com/article/hacker-collective-anonymous-release-documents-proving-bank-america-committed-fraud-monday

  5. Frankielee,I agree whole heartedly with your observations and I’m wondering why more people aren’t seeing this with the same clarity that some us seem to be able to get with this.Whole neighborhoods have been decimated,never mind cities and counties.It seems a single minded pursuit is being perpetrated against the citizens of the US never mind the whole world.I agree take it to the streets,this is the only way we will be able to at long last make this right.

  6. “While today’s event is unique, it is worth noting that in the most recent major earthquake in Japan, the 1995 Great Hanshin-Awaji Earthquake in Kobe, the economic loss was estimated to be in the region of 2.5% of Japan’s [gross domestic product] at the time and the insured loss was only in the region of $3 billion, which was mostly retained domestically,” James Vickers, Chairman of Willis Re International & Specialty, part ofWillis Group Holdings PLC (NYSE: WSH), told the Wall Street Journal. In fact, investors already may be factoring recollections of the Kobe earthquake into their calculations.

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~`

    These people disgust me more and more everyday in a way that I can’t even describe. Speculators led by Bernanke’s idiocy are putting millions into starvation mode and death for profits to be had in wheat, rice, and other futures.

    Speculators are driving up oil which could cease commerce, just because it’s lining their profits.

    Republicans and Democrats both are being paid never before seen levels of graft to sell America’s natural resources, destroy her water supplies, allow the fracking of gas at the possible total destruction of water resources….an effect not unlike a China syndome meltdown for localities involved in a large swath of America.

    And of course both sides of the aisle have joined forces with the most corrupt entities ever to claim to be doing god’s work. The failure of the banks and their so-called management is a slap in the face of every university and business school that graduated any of these idiots running these institutions…the same idiots granting themselves millions while watching their companies burn, their fellow citizens lose their jobs, and the prospect of an American future for generations to come look as bleak as ever witnessed.

    And all the while these ruthless bastards in boardrooms across America grant themselves million if not billions of dollars in bonuses earned only by the sweat of the American taxpayer who is being deposited on the curb along with his and her belongings stuffed into garbage bags by who? Sheriffs? Isn’t that a little too much like Russia of old? Too much like watching the Jews of poland slowly be shipped off in cattle cars?

    At what point do we revolt? I’m there folks. I’ve ****ing had it. If our government no longer cares to even pretend to represent us, while blowing their corporate masters, I say screw them. Let’s take it to the streets. Lets see what happens when we shut down the minions in Congressand they can’t felate their bosses on high.

    We’re passed time. It is now or servitude forever.

  7. Jesus another Class Action is brewing in MA too with Stern’s buddies at Harmon Law Office check out today’s HD adventure…. B 10 problems out the wazoo:

    WAMU refuses loan mods and U.S. Trustee’s Office stonewalls a widow.

    http://mortgagemovies.blogspot.com/2011/03/video-nh-us-trustee-protects-jp-morgan.html

    http://www.youtube.com/watch?v=TaumPK_PaPE

    Nice, huh.

  8. bofa was originator & servicing our second loan. We defaulted and they wrote off the debt, +$100k. Yesterday I get a collection letter Solace Financial. Here is what I found:

    http://shortsalesuperstars.com/forum/topics/collection-companies-life

  9. There is a Class Action lawsuit in the Houston Texas Bankrupcty Court for Barrett, Daffin, Frappier, Turner & Engel LLP in Chapter 7 for the sharing of fee and filing fraudulent documents

  10. DOC] UCC – Asst of Notes II.doc – DIRT – A legal Disussion group for …

  11. WASHINGTON — As state and federal officials near an agreement with the nation’s largest financial firms to settle allegations of abusive foreclosure practices, top Republicans in Congress are aggressively disputing their authority, decrying the possibility of expensive penalties against banks and questioning the need to help distressed homeowners.

    ~snip~

    On Wednesday, leading Republicans on the House Financial Services Committee sent a letter to Treasury Secretary Timothy Geithner expressing their concerns with any proposed settlement that would further regulate the mortgage industry or lead to large fines being levied against financial institutions. Also Wednesday, Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee, blasted the negotiations between banks and government officials, likening them to a “shakedown.”

    ~~~~~~~~~~~~~~~~~

    Alright! So….who here voted for these idiots?

    http://www.huffingtonpost.com/2011/03/11/gop-sights-homeowners-elizabeth-warren_n_834612.html

  12. It had best be in the contract or else it is uncalled for and requires further attention by the attorney general. SEC left it in the propsal, good for them – Let the stockholders vote on it.

    Someone needs to take a look at their short sale policy and how they are forcing homeowners to get realtors to do their deals – that is the only way the BAC can control the short sale price. They say it is precautionary, but the homeowner who finds a buyer for his home has to incur additional realtor expense not to mention the fact that he may be subject to a deficiency if his house doesn’t sell sufficiently to make it up.

    Even when the seller has a good buyer, BAC is still requiring the seller to sign agreement with realtor and actually list the property so they can continue to seek higher offers. One case in particular I was working on it appears the buyer is paying the seller’s note in full and actually has been pre approved by BAC, not to mention he has been a customer of theirs for years.

    In my day, we got an appraisal with adequate comps to support the price. Here is another intentional act to force every effort they can to get as much as they can even if the homeowner loses his buyer.

  13. Best short sale ever!

    Desoer’s testimony before the State Banking Committee:

    “But these are not normal times, and the traditional solutions of the refinance of debt or the sale of a home at sufficient value to repay the debt, do not exist for many, which causes great anxiety and frustration for borrowers under economic stress.”

    Uh…well…they do exist for some now don’t they? Barb’s only frustration with her home sale was that it was revealed.

  14. Senior Executive Compensation is that what thier calling this type of behavior these days.Why not find someone in the area to fill the position.Must be to plebian a concept to be understood by these guys .More rip offs at the tax payers expense.They won’t crush down our housing values to assimilate todays prices but they will do it for one of thier own.

  15. I know it is hard to take but this may be in her contract to relocate. BoA seems to be the only one doing anything about bad loans. Need more info on their bad loan Department.
    Stan Putra
    Racine WI

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