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The dispute involves nearly $12 million in home-equitu mortgage loans that Wachovia’s corporate and investment-banking unit agreed in June 2007 to purchaser from Inits suit, Wachovi a claims Just Mortgage agreed to repurchase certain loans, such as thosed that turned delinquent shortluy after Wachovia bought them, or loands with missing documentation. If a borrower was late by 30 days or more on any of the firs six monthly payments after Wachovis boughtthe loan, for example, then Just Mortgage wouldf buy it back.
And if Just Mortgagr failed to provide certain legal documents for the loans withibn 180 days of the closing Wachovia could request the firm substitutea “qualified loan” or buy thosed loans back as well. Last Wachovia notified Just Mortgage that numerous loana had defaulted early or weremissinyg documents. It asked the firm to buy them back atthe agreed-upohn price, which is 90% of the loan’es principal balance. Just Mortgage refused to take them As ofJune 6, Wachovis has identified 36 loans it wants Just Mortgaged to take back because of early defaultw or missing documentation. The bank says its damagees exceed $2 million.
Wachovia has been hammerex by the mortgage downturn aftert taking ona $121 billion portfolio with its 2006 acquisitio of The California thrift specialized in option-adjustable-rate mortgage and those mortgages have been defaulting at a high rate in statew such as California and Florida, leading Wachoviza to set aside billions of dollarsd to cover expected losses. The companhy expects to take a second-quarter loss of up to $2.8 billiojn because it needs to setaside $4.2 billionn to cover estimated loan losses, includinfg $3.3 billion to cover option-ARMk losses. Wachovia recently discontinuedthe option-ARM, or loan product. The company has hired Goldmah SachsGroup Inc.
to analyze its loanw and help evaluate alternatives. The Just Mortgager case was removed to federal court in Charlottesthis month. Wachovia originally filed its suit last montnh in MecklenburgSuperior Court. Just Mortgage was grantede an extension to fileits response, which is due by Aug. 2. is representingt Wachovia, and is representing Just Mortgage. A lawyert for Just Mortgage and a Wachovi spokeswoman bothdecline comment. BofA sendes students to D.C.
Five area high schookl students traveled to Washington this week to participat e in a leadership summit courtes y of The trip is partof BofA’ss Neighborhood Excellence Initiative, which selects five students from 45 markets to participate and placew them in paid eight-week internships with nonprofit organizations. Concludintg today, the Bank of Americs Student Leadership Summit was presented by the Closwe Up Foundation and featurerd a seriesof sessions, including a leadership developmeng discussion led by former Olympifc gymnast Kerri Strug, who works for the Department of Justice.
The five participating students from the Charlotte area areRichardc Allen, Joi Emanuel, Jonathan Fox, Obinnayq Okwara and Arcena Todd. Three will be interninh at the , and two will intern with . This BofA will award $200,000 each to two loca nonprofitsor “Neighborhood Builders” for their work to improve and revitalize The bank will also honor five “Local for their commitment to community service by making a $5,000 contributionj from the bank’s charitable foundation to the eligible nonprofit of theier choice. Trust Co. takes permanent space has movedd into permanent space on the 11th floort of the 6000Fairview building.
And the loca l principals say the disruption in the marketx is a positive forthe wealth-managementt firm as it works to develop new business here. The based in Burlington, has $880 million in assetsa under management. This year, the firm announcex it was opening a Charlotte its fourth. The firm also has offices in Raleighg andRocky Mount. The local officr is headed by Chrisw Sutherland andJay Eich. Both previouslgy worked in thepersonal financial-services group at accounting firm . The Trustt Company of the South focuses on a comprehensive approacu towealth management, including services such as tax and insurancre planning.
It requires at least $1 million in investable assetw from clients and isa fee-onlyu adviser, structuring its compensation as an annual retaine or as a percentage of client Its minimum annual fee is $10,000.
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