
Some ominous clouds are lingering over the residential mortgage industry.
According to reports by Bloomberg and the Charlotte Business Journal, Bank of America Corp. (NYSE: BAC) CEO Brian Moynihan told a group of attorneys general in Charlotte, N.C., yesterday that more than 50 percent of people who got assistance on mortgages to avoid foreclosures are defaulting again, and that, while the bank is open to suggestions, it is not keen on wholesale principal write-downs.