2nd UPDATE: BofA Faces $20 Billion In 2Q Costs From Mortgage Woes

http://online.wsj.com/article/BT-CO-20110629-709447.html

NEW YORK -(Dow Jones)- Bank of America Corp.'s (BAC) will take a massive blow of more than $20 billion in the second-quarter for various mortgage-related costs, including $14 billion the bank will put aside to repurchase soured mortgage loans from investors.

The costs show the continuing impact on the nation's biggest bank from the housing crisis and its purchase of home-lender Countrywide Financial.

The bank will pay $8.5 billion to settle claims brought by a group of high-profile investors, including BlackRock Inc. (BLK), MetLife Inc. (MET) and Pacific Investment Management Co., or Pimco, who purchased mortgage-backed securities that subsequently went sour. Separately, the bank said it was taking a further $5.5 billion second-quarter provision tied to its exposure to government-run mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) as well as other private investors.

The bank also expects to record $6.4 billion in other mortgage-related charges in the period, including $2.6 billion to write off the balance of goodwill in the consumer real-estate services business and roughly $4 billion that includes litigation costs and other writedowns related to servicing and foreclosure costs.

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no worries.

First, the Mortgage backed securities that BOA/Countrywide sold to the investors..were illegally sold, in that they were not transferred properly, and not backed by mortgages. ( that is what all the "Trust" and "trustee" recent law suits have been about)

2nd, "roughly $4 billion that includes litigation costs and other writedowns related to servicing and foreclosure costs."
is referring to the blantant illegal foreclosure process by BOA ( and other big banks, who will have their own writedowns and paybacks to do).
These illegal foreclosures were finally revealed by a sufficient number of state's Attorneys General via lawsuits.
So BOA is counting the "roughly 4 billion" as cost of fines, court costs, ad losses related to fraud. Some of these costs are what BOA has paid to the SEC and other government oversight agencies, but is nowhere near the total of the illegal gains the bank has made all mortgage fraud.

Those who wish to find the details of the above summary can read the various stories in places in 4closurefraud.org.

The race between the big banks getting caught by effective prosecutors and getting Congress/Feds to cover their crimes has been interesting to watch.