Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. Bank of America will be able to serve the majority of eligible customers – homeowners whose mortgages are serviced by Bank of America or Countrywide and who do not have mortgage insurance on their current loans. Additional borrowers will be included as systems become operational. Bank of America announced that it has completed the transfer of the servicing of about 180,000 Ginnie Mae-securitized mortgage accounts previously serviced by Taylor, Bean and Whitaker (TBW) to its home loans servicing portfolio. Letters welcoming those homeowners to Bank of America will be mailed this week and should arrive by September 4.

Michael Keating, national servicing executive of Bank of America said “Bank of America BAC Home Loans are pleased and fully prepared to welcome these homeowners to the largest and one of the most advanced servicing platforms in the mortgage industry,” also “We are striving to make this a smooth and efficient transition and to begin offering former TBW customers the full range of our world-class services as soon as possible.”

Now, that all loans have been boarded on the BAC Home Loans servicing system. The Buyer Agent Commission (BAC) that is larger than what is generally offered.  Most home sellers offer a commission of 6 percent to the agents that assist to sell their homes.  Half of the commission or 3 percent goes to the agent that listed the home for sale.  The other 3 percent goes to the agent who represents the buyer in the transaction.  By offering an inflated BAC, the listing agent is hoping that the agent representing the buyer will show and recommend their home before the home that only has a 3 percent commission. This service is providing by the Bank of America who assures homeowners that during this transition if TBW, rather than BAC Home Loans Servicing, receives a payment in timely fashion, no late fee or derogatory credit reporting will be imposed with respect to that payment and the payment will not be treated as late for any other purpose. This protection will remain in place through the October payment period.

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The US economy may be entering into a good zone, but their banks are still in intensive care. Banking in the US is about to get a whole lot more expensive for consumers as the government pick and choose who gets to live and who is allowed to fail? The number of “problems” banks has swelled to 416, up from 305 at the end of March, helping drain the country’s deposit insurance fund to its lowest level in 16 years, according to a quarterly status report yesterday from the US Federal Deposit Insurance Corp. (FDIC).

Now the question which will rise from the people “is their savings will remain safe?”The grim tally prompted FDIC chairwoman Sheila Bair to reassure Americans that their savings remain safe. “No matter how challenging the environment, the FDIC has ample resources to continue protecting depositors as we have for the last 75 years.” Ms. Bair said firmly. “No insured depositor has ever lost a penny of insured deposits, and no one ever will.” She acknowledged that the slow painful process of cleaning up bad banks, which has sapped the FDIC’s resources, could drag on for more than a year after the economy recovers.

Banking crisis is impacting badly and draining the FDIC’s resources as banks fail at a faster rate than it can readily handle. The insurance fund, which protects deposits of up to $250,000 (US) at roughly 8,200 US banks and savings institutions, has dwindled to just $10.4-billion. That’s down from more than $45-billion a year ago, as the FDIC has been forced to set aside funds to handle looming failures. So far, 81 banks have closed their doors this year, including 45 since the end of March. So, these are some very big challenges for the government to resolve and drive their country successfully!

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It’s the first time that a bank in Alabama got under crisis and crunch since the early 1990s.The workers at the Colonial Bank, which is now a part of BB&T family, say it’s business as usual at the branch off Carter Hill Road. BB&T still looks like Colonial Bank; BB&T is slowly putting its name on the building. Colonial has been badly battered by the credit crisis, as higher charge-offs and rising foreclosures in the bank’s Florida construction-loan portfolio continue to strain its balance sheet. Colonial Bank is facing this decade’s worst problem for their bank. The Bank of America has also sue colonial bank for 1 $billion dollar in cash loans and cash. Still they are struggling to gain their momentum.

Signs adorn doors and windows welcoming Colonial Bank clients to the new BB&T family. Many customers say news of Colonial’s downfall didn’t worry them. “It’s like another bank that’s purchasing a bank…just right now it’s at a discount,” says Montgomery resident, Johnnie Kimbrough. But Kimbrough says that. “You always know something like this is possible. It’s very surprising when it does happen though.”

But as leaders work out the nuts and bolts of the take over at Colonial’s corporate headquarters in Montgomery, Andrew Gray with the FDIC says customers should keep banking as normal. “Over the weekend they can use their debit cards, their ATM cards, they can write checks.” While the FDIC typically insures individual accounts which are up to $250, 000. So, “Both the insured and the uninsured are protected. No depositor lost a penny in this case.”

So, the rapid change in economical situation was just because of the sinking of the banking sector. The instability and the failure if the banking sector has become the one of the main reason of the current economical disaster!

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The current time is one of the worst times for the most of the fields of life and most of the industries which are suffering badly due to this crisis. Now there is another issue rising Bank of America, which was the collateral agent for certain loans of Ocala Funding LLC, said Colonial refused to return more than $1 billion of loans and cash. So, this thing made Bank of America angry and they decided to sue.

After these clashes on loans, these issues are badly effecting the mortgage industry that people are worried that how to buy homes or take mortgage loans. Now, the warehouse lending market is decimated quickly. In 2007, it was worth to an estimated $200 billion; now there is just $25 billion available — 25% of which belongs to Colonial. With Colonial’s failure, those funds could become even scarier. These scary threats are creating more problems as country is already dying due to economical collapse!

Now the money began drying up when investors started shunning mortgages not guaranteed by government-backed agencies such as Fannie Mae. These loans, made by the independent mortgage bankers, had become closely associated with the worst excesses of the housing bubble. So, now it’s President’s responsibility that how his administration resolve all these issues to save our country! Because, it’s very urgent to take some good steps to solve the Colonial issue and the mortgages problem to save people who are now getting homeless!

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The President of USA Barack Obama declared a new loan policy for the home loans and just 9% of eligible home loans have been changed under the Obama program. President Obama and two well known banks of America (BofA) and Wells Fargo declared the new modified plan for the home owners who took loan for their home. BofA and Wells Fargo, say’s the report doesn’t reflect modifications made outside the plan. As the US people are already fighting against the rising rate of loans so after the modification of home Loan policy offered by the two mega banks that dominate the mortgage market; so Fargo & co. has reduced the payments for only 6% of its eligible home loans under the government’s program, and Bank of America Corp.

After a long time the administration, under tremendous pressure to help homeowners avoid foreclosure, has said that despite the low percentage of loans that had been modified under its plan, the program “has made rapid progress in a few short months” and was on track to help 3 million to 4 million eligible borrowers. So, now the hopes of the American people are again alive after this step taken by the President Obama’s and I wish we could again lift and boost our economy again for a longer period!

Watch out the video “Loan Modification – Federal Foreclosure Prevention Plan”

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