We've been hearing about how disgusted homeowners are with not being able to do anything with their mortgages. Many are even just walking away from their home.
It's not all the bank's fault.
The two hedge funds — Greenwich Financial and Braddock Financial — hold securities backed by mortgages, and they argue that the terms of the underlying loans cannot be changed without their consent.
So they are suing Countrywide/Bank of America (CW). They state that the investor, not the lender will be the ones losing their investment and they are protecting their investors' interests.
CW had been working as part of a settlement with many Attorneys General to help homeowners refinance their mortgages if it meets certain criteria (I believe the criteria is similar to that for Hope for Homeowners, revealed about the same time).
CW had been working to start these restructurings the first week of December, based on my inside sources actively working on this program.
Reference: NY Times (10/23), KNX-AM this week, anonymous Countrywide sources, HousingWire (12/2)
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