“Bill Frey of Greenwich Financial - Countrywide worked out an arrangement with fifteen state attorney generals for fraudulent lending practices and they’re handing the bill to bondholders. They plead guilty and they cut a deal on hundreds of thousands of fraudulent loans that they made.
I am for loan modifications, but just not based only on Countrywide and B of A’s terms. They must be fair for all parties. Read the comments from Mr. Frey and watch the Fox Business video below.”
Most consumers think these investment firms and hedge fund CEO’s are ruthless scoundrels only out for the buck. While that is true in many more Wall Street cases than not, it isn’t true in all. As I believe is in the case of Bill Frey, President of Greenwich Financial.
I had the pleasure in speaking with him yesterday about his lawsuit against Countrywide and Bank of America.
His legal beef is simple and I will keep it simple. He is representing a class of investors who bought mortgage backed securities (MBS) from Countrywide that had a specific repurchase clause that if Countrywide modified these loans, they would have to buy them back at full face value.
When B of A arbitrarily agreed to settle with the state Attorney General to modify $8.4 billion in mortgages, they basically broke the terms of the said contracts on these mortgage backed securities. Now he feels they have to simply buy them back from the investors.
Bill Frey says he is the man that is not going to back down and is going to fight for investors. Much like I am fighting for homeowners with toxic home mortgages, he plans to confront Bank of America and Countrywide on behalf of his investors who are not getting their voice and I believe him 100%. He also said he is a fair man and there must be fair play in this by all parties.
I agree that things must be fair with a happy medium being reached. Something tells me that Mr. Frey and I will have many more conversations about these Countrywide home loans and how this can be done fairly for everyone involved.
In reading these Pooling and Servicing Agreements, I have seen the subject repurchase clause with my own eyes and this loan modification buy back clause is as plain as day folks. It says if you modify, then you buy these toxic Countrywide originated loans back. (proof coming soon 
)
With a possible $122 billion on the loan modification line, Bank of America and Countrywide have some major issues to settle here. B of A is in deep on this one. Emergency, I think we just lost her pulse folks…
Watch Bill Frey on Fox Business
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