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Bank of America reports loss on huge legal charges

The legal legacy of the housing bust weighed on Bank of America earnings Wednesday, resulting in a quarterly loss even as some operating units posted solid results. The US banking giant lost $276 million for the first quarter, with the biggest drag coming from $6 billion to settle a pile of lawsuits dealing mostly with BofA's sale of mortgage-backed securities. The loss was its first since the second quarter of 2011. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," said chief executive Brian Moynihan.

Bank of America reports loss on huge legal charges

The legal legacy of the housing bust weighed on Bank of America earnings Wednesday, resulting in a quarterly loss even as some operating units posted solid results. The US banking giant lost $276 million for the first quarter, with the biggest drag coming from $6 billion to settle a pile of lawsuits dealing mostly with BofA's sale of mortgage-backed securities. The loss was its first since the second quarter of 2011. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," said chief executive Brian Moynihan.

Bank of America reports $276 mn loss on huge legal costs

Bank of America reported Wednesday a quarterly loss of $276 million due to $6 billion in legal expenses that included a huge settlement with the US on mortgage-backed securities. The bank had revenues of $22.8 billion, compared with earnings of $1.5 billion on revenues of $23.4 billion in the period a year ago. Operating results were mixed and included weaker mortgage banking profits but higher investment and brokerage income. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," said chief executive Brian Moynihan.

OSFI issues proposed new rules to govern conduct of mortgage insurers

OTTAWA - Canada's financial regulator is looking to issue new guidelines governing high-risk mortgages in the country's housing market. The Office of the Superintendent of Financial Institutions has asked for comments on the guidelines that would compel mortgage insurers to do due diligence on the ability of borrowers to service their debts and also require them to tighten monitoring procedures.

Housing industry asks $5 trillion question: what does Watt want?

By Margaret Chadbourn WASHINGTON (Reuters) - The U.S. housing industry has waited three months to find out how Mel Watt will govern taxpayer-owned mortgage companies Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB>, and have been frustrated by his silence. The former 11-term congressman from North Carolina, who took over the agency that oversees the two enterprises in January, has not delivered an annual strategic plan, which would usually be public by now.

Deutsche Bank wins dismissal of FHFA case

By Karen Freifeld NEW YORK (Reuters) - Deutsche Bank AG has won dismissal of a lawsuit seeking to have it cover government-sponsored Freddie Mac's losses on defective mortgage securities purchased from a more than $1.4 billion trust. The German bank was accused by the Federal Housing Finance Agency, which oversees Freddie Mac, of misrepresenting the underwriting and quality of home loans backing the securities in the trust, which dated from 2006.

Fannie, Freddie shareholders lobby against U.S. housing reform bill

By Margaret Chadbourn WASHINGTON (Reuters) - A coalition of investors in Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB> on Wednesday launched an effort to stop Congress from moving ahead with a U.S. housing finance reform bill, arguing it would deny them a fair share in any remaining value in the two companies.

Mortgage applications fell last week as refinance down: MBA

NEW YORK (Reuters) - Applications for U.S. home mortgages fell last week as refinancing slipped, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 1.6 percent in the week ended April 4. The MBA's seasonally adjusted index of refinancing applications fell 4.9 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, rose 2.7 percent.

Household loans resume upward trend in February

SEOUL, April 8 (Yonhap) -- Household loans extended by South Korean financial institutions increased 3 trillion won (US$2.8 billion) in February from a month earlier as mortgage and credit loans rose, the central bank said Tuesday. Outstanding household lending by local banks and non-banking institutions totaled 688.1 trillion won as of end-February, compared with 685.1 trillion won a month earlier, according to the Bank of Korea (BOK).

After hard winter, U.S. housing industry sees signs of pickup

By Lewis Krauskopf and Michelle Conlin NEW YORK (Reuters) - In Indianapolis, an open house event tends to draw 10 people on a good day. But after the snowiest winter on record for the U.S. Midwestern city, prospective home buyers were champing at the bit: 45 people came to an open house late last month, according to mortgage executive Greg Block.
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