Largest Banks Each Hold Some $20 Billion in Foreclosed Notes

Say what you will about the current foreclosure paperwork signing mess, the banks are still holding a ton of sour mortgage notes. At least that’s the analysis of Weiss Ratings, an independent ratings agency covering the financial sector. It released data this month that JPMorgan Chase, Wells Fargo and Bank of America are all reporting more than $20 billion in mortgages that are currently foreclosed or in some process of foreclosure. That’s $20 billion EACH.

For every dollar these banks hold of mortgages in foreclosure, there is an additional $2 in loans at least 30 days past due. These figures were as of midyear, which begins to give a clearer picture of just how much these banks are drowning in foreclosure files. Almost makes you surprised this robo-signers scenario didn’t happen sooner.

Bank of America has the largest volume of bad mortgages among U.S. banks, with Wells Fargo in second.

When taking into account both their exposure to foreclosures and other economic factors, JPMorgan, Bank of America and Wells Fargo all merit a rating of D (“weak”) or lower from Weiss Ratings, indicating vulnerability to financial difficulties and instability if conditions continue to deteriorate.