Bank of America Restarts Foreclosures
NEW YORK (
) --
Bank of America
(BAC) - Get Report
has resumed some foreclosures after a pause when it admitted problems with its procedures.
Attorneys at the bank are proceeding 16,000 cases this month, according to a Bank of America press release.
Wells Fargo
(WFC) - Get Report
and
JPMorgan Chase
(JPM) - Get Report
are also restarting foreclosures after reviewing their procedures, according to a report in
The Wall Street Journal
.
Despite the positive news for the bank and its investors, Bank of America and other institutions are far from out of the woods when it comes to mortgage-related legal challenges.
A report from Compass Point Research & Trading suggests banks face a far greater threat from investors challenges to mortgage backed securities they created and sold.
The report estimates Bank of America could lose more than $30 billion due to investor "putbacks" of MBS, more than any other bank. JPMorgan has the second most exposure among U.S. banks, followed by
Goldman Sachs
(GS) - Get Report
,
Mortgage Stanley
(MS) - Get Report
and
Citigroup
(C) - Get Report
.
--
Written by Dan Freed in New York
.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.