Bank of America, which has been less than loquacious about the status of its potentially legally dubious foreclosure documentation, today reassigned its general corporate auditor to the task of assessing risk at its home-loan business, Bloomberg reports.
Bloomberg says that Paul Morrison, a 10-year veteran BofA auditor, now faces the unenviable task of having to size up potential problems facing the bank’s mortgage unit at a time when “potential problems” loom larger than usual.
“We are aligning talent and resources to address one of our most critical business issues,” Bruce Thompson, the bank’s chief risk officer, said in the memo, which was confirmed by Dan Frahm, a bank spokesman. “Throughout Paul’s tenure as corporate general auditor, he demonstrated the leadership skills, business acumen and a unique expertise that will make him successful in this important assignment.”
Now is as good a time as any to “align talent and resources.” BofA’s 2008 acquisition of troubled mortgage firm Countrywide made it a major player in the mortgage business. Countrywide isn’t a great business to own these days, since the Feds and 50 state attorneys general are investigating major banks’ foreclosure practices for potential legal foibles. Plus, mortgage investors are holding BofA’s feet to the fire over $47 billion in securities that may have been poorly originated. Goldman Sachs analysts today said that the market may have overestimated foreclosure crisis-related costs, but so far the risk posed by faulty loan procedures remains ominously undefined.
Hopefully BofA’s main accountant can help the bank get a handle on the downside. Plenty of investors would be relieved to know more.
mtaylor [at] observer.com | @mbrookstaylor
