BofA in Focus for Addressing Legal Issues

The Servicemember’s Civil Relief Act (SCRA) expanded and improved the former Soldiers’ and Sailors’ Civil Relief Act (SSCRA). This expansion is a part of the National Mortgage Settlement (NMS), the $25 billion nationwide mortgage settlement announced in Feb 2012. With this policy change, we have seen resolution of legacy legal issues and restructuring activities. For more info read the full article from ZACKS below:

The Industry has seen resolution of legacy legal issues and
restructuring activities in the last five trading days. The long awaited
decision for the U.S. armed forces to receive the first round of
compensation under a federal law, the Service members Civil Relief Act,
was delivered. The compensation is a part of the National Mortgage
Settlement (NMS) – the $25 billion nationwide mortgage settlement
announced in Feb 2012.

Bank of America Corp. (BAC Analyst Report)
was in focus for its efforts to resolve legal issues. The
law-enforcement agencies are trying to settle issues in order to avoid
lengthy litigations. With a decline in profitability on the back of
escalating litigation expenses and unfavorable operating environment,
banks have been trending toward higher fees to dodge top-line pressure
with Citigroup Inc. (C Analyst Report) leading the way.

Notably, investors seem confident of banking stocks for their efforts
to end legal issues and restructure business, which drove the stocks
higher.

 (Read the last Bank Stock Roundup for Feb 6, 2015)

Recap of the Week’s Most Important Developments:

1. After waiting for three years, the U.S. armed forces are going to
receive the first round of compensation under a federal law, the Service
members Civil Relief Act, which protects service members from
foreclosures. This compensation is a part of the National Mortgage
Settlement (NMS), the $25 billion nationwide mortgage settlement
announced in Feb 2012.

READ FULL ARTICLE HERE