SEC Asked Bank Of America For Details On Loan-Loss Reserves

The Securities and Exchange Commission (SEC) sought information from Bank of America Corp (BAC.N) last year about the loan-loss reserves used to repurchase faulty home loans, company filings showed.

In an exchange of letters, the SEC had also asked the bank to explain its methodology of establishing repurchase reserves.

"Discuss the level and type of repurchase requests you are receiving, and any trends that have been identified, including your success rates in avoiding settling the claim," the regulator said in a letter dated January 29, 2010.

The bank's correspondence with the SEC was made public on Monday.

Bank of America had temporarily halted foreclosures nationwide last fall after it found problems with the documents used to repossess homes.

The bank had also said a wide-ranging probe into banks' foreclosure problems could lead to "significant" legal costs in 2011.

"It is not unusual for the SEC to have questions about our regulatory filings and as the letters indicate, we responded to those questions and the issues appear to be resolved," Bank of America spokesman Jerry Dubrowski told Bloomberg in a phone interview.

Reuters could not immediately reach Bank of America for comment outside regular business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[noam4prez]

02:57 PM on 04/06/2011

Chris Hedges:
http://www.truthdig.com/report/item/this_is_what_resistance_looks_like_20110403/
"If you are among the one in six workers in this country who does not have a job, if you are among the some 6 million people who have lost their homes to repossessions, if you are among the many hundreds of thousands of people who went bankrupt last year because they could not pay their medical bills or if you have simply had enough of the current kleptocracy, join us in Union Square Park for the “Sounds of Resistance Concert,” which will feature political hip-hop/rock powerhouse Junkyard Empire with Broadcast Live and Sketch the Cataclysm. The organizers have set up a website, and there’s more information on their Facebook page."
http://itsoureconomy.us/
http://www.facebook.com/event.php?eid=155800227813376

[BabyMed]

02:42 PM on 04/06/2011

SEC asked B of A to...

B of A said to "Go Away" and the SEC ran all the way back home...

end of story...

[TryToSeeItMyWay]

10:12 AM on 04/06/2011

They're following B of A's shenanigans at:
www.piggybankblog.com

[fortressfountain]

03:56 PM on 04/05/2011

Why doesn't b of a do what mcdonalds is doing? Hire thousands of people so they can get incentives from the federal government.
Not that they do not get plenty now, but the greedy always want more than they can get.
Does anyone really do business at this bank?
If you do you will eventually be ripped off.

[Chudye]

03:14 PM on 04/05/2011

If the economy doesn't soon start producing job growth (big growth), the banks will see worse times as it is making home ownership not as attractive as in the past. Jobs require people to be mobile, and people who buy can't be mobile if they can't sell their homes.

And the oft cited reason to buy is that you want be faced with having to move. Wrong. Bad neighbors, pollution of natural resources, natural disasters and property taken for the "public good" are all reasons that this no longer holds true. Also and as times have gotten so bad for cities and towns, property taxes just keep going up even though property values keep going down.

Renting sounds a lot more realistic due to the above and the fact that we never really own anything anyway. Having to put a new roof on a house can buy a lot of years of rent. And renters don't have to stay put (subject to terms of lease if there is one) if the rent goes up or the dwelling isn't well maintained. IMHO, home ownership has become passe and way overrated.

[Chudye]

03:17 PM on 04/05/2011

OOPs. WON'T not want (in 2nd para.)

[james rimes]

12:54 AM on 04/06/2011

Passe and Overrated are not the Sovereign Property Rights usually lost with renting. The Homeland Security Act is Bad Enough..Having to Rent From Freddie Mac and Fannie Mae Even Worse...
Chudye.. can you see the 3am. Monsanto Type Raids in a Rented Future..(are you hiding Little Debbies and Cigarettes..ARE YOU..Wake Up...ARE YOU??? Did you read your lease/insurance agreement..DID YOU??? )

[james rimes]

03:14 PM on 04/05/2011

Shouldn't the SEC know how much on reserves BofA has? Is this just a warning shot that will cause the PACs to move more MONEY this week? How many people now work at the SEC 2-3? Request like this from the SEC will only further diminish the Departments funding...Just ask Barney Frank.."Funding is appropriated according to investigative Interest."

[DASChicago]

12:16 AM on 04/06/2011

Yeah, especially if they are "just asking"...it should be a damn DEMAND at this point-or else!-. But, that's my second thought, the first was the same as yours...the SEC she know already. dugh!
It's becoming increasingly conveniencing that the people really believe that the American people are afflicted with Attention Deficit Disorder.

[abbadabba]

02:01 PM on 04/05/2011

I just rewatched "Breaking the Bank" on Netflix. Frontline story on how to collapse a collapsable cup and still pretend it can hold water.

[cats530]

12:51 PM on 04/05/2011

INSOLVENT INSOLVENT INSOLVENT INSOLVENT INSOLVENT INSOLVENT INSOLVENT...

[8thplane]

12:40 PM on 04/05/2011

Well, they have Federal prosecutorial immunity, so why shouldn't they "thumb their nose" at the SEC, and everyone else!

[BonsaTree]

12:17 PM on 04/05/2011

So when is the IRA going to look into their tax returns? BofA paid no corporate income taxes?

WTF?

[iam99]

10:20 AM on 04/05/2011

People, don't try to cast out your net during a storm, it may catch in a gust of wind and be blown back upon you; with you ensnared and the net a tangled mess you can catch no fish.

[concerned21 2]

10:19 AM on 04/05/2011

a few more details in this report would be nice

[cats530]

03:38 PM on 04/05/2011

Here are a few more...

http://www.zerohedge.com/article/and-more-bad-news-bank-america-sec-says-bank-lynch-loan-policy-may-have-been-inconsistent-in

[concerned21 2]

06:42 PM on 04/05/2011

thank you that was very interesting information

[SangZe]

09:55 AM on 04/05/2011

BofA laughed out loud.