Banks are going to stink

Big banks, BAC, Citi, JPM, and WFC, are on all media title news on home mortgage investigation. BAC announced that they would stop all foreclosure processes until the investigation concludes. JPM had similar announcement. No banks would do that unless there is some solid.

Fault foreclosure processes were rampant in lenders because they wanted to expedite the process. Wells' practice is now on the New York Times. The then Wachovia issued loan now is found that there are other loan on the property. The buyer bought a non-clean titiled property in CA. Finally Wells refunded the buyer. Nonetheless, the practice was disclosed. Wells has not yet announced the stop of foreclosure. Given that Wells has the second largest mortgage portfolio (BAC is No. 1), it is reasonable to think Wells would do that soon.

If foreclosure investigation takes a long toll, BAC and WFC will be the two largest victim. They have to push homes out of their balance sheets really quick, as a matter of days. Recovery will slow down.

It is better to avoid these banks for now until the fog clears.