Analysis Shows Large Banks Fraught with Mortgage Risk

By Kyle Chezum Updated on 10/26/2010

Bank of America has received a lot of attention lately over claims that the mortgage originator has acted fraudulently toward delinquent borrowers by foreclosing properties without accurate documentation.  This has prompted legal action at state and federal levels, and Bank of America has been asked to buy back bad loans.

But Bank of America is not the only bank that has come under scrutiny.  Most major banks can expect to face buy back requests soon, an analysis by Moshe Orenbuch of Credit Suisse claims.  He estimates that buy backs will cost the mortgage industry as much as $65 billion, but that the banking industry can handle it.

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