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Some details on why Bank of America is in so much trouble:
- Almost one in three Bank of America borrowers are underwater: In its most recent 10-k, Bank of America reports that 32 percent of the loans in its mortgage portfolio have loan-to-value ratios that are greater than 100. Excluding loans from Countrywide, the number is still high:
- Their non-performing loans are really non-performing. As of the end of 2010, seventy-two percent of loans classified by B of A as non-performing were more than 180 days past due.
- Bank of America is heavy in loans from the peak of the housing bubble: Vintages from 2006 and 2007 account for two of every three non-performing loans. Those vintages make up 38 percent of the loan portfolio held by the Bank.
- More than two in five of all loans, not just the 2006-07 vintages, are from California or Florida.
- Almost one in three of all residential mortgage loans in their portfolio were originated as interest-only loans.
- At the end of 2010, Bank of America was holding a little more more than 32,000 properties that were in foreclosure or non-performing. Those homes had a value of more than $2 billion.