Bank of America will cover any losses FNF MAY have
Jacksonville, Fla.-based Fidelity National said Bank of America Corp. will be required to show that all documentation and procedures related to the foreclosure of a property comply with state law and local practice. The Charlotte, N.C., bank will also cover any losses Fidelity National faces that are directly related to its failure to comply with laws on transactions in which foreclosure has already occurred or will take place.
There's still a foreclosure slowdown, though. I didn't mind before because FNF was paying me 5% to wait it out, but now the slowdown is a bigger concern for me. Even though FNF's liability for roboclosures is minimal, it looks like the only way the stock price will recover is if management follows through with the buybacks. Unfortunately, I don't see that happening soon. Until business picks up again, I predict management will be hoarding cash rather than spending it on buybacks.