Can someone dumb it down for me? Not really up to speed on legalese...


Countrywide/BofA packaged up a bunch of mortgages and sold them as "mortgage backed securities", representing them as good, solid loans. They have turned out not to be, which entitles the bondholders to force Countrywide/BofA to buy them all back. The bondholders have told the servicer to either modify those loans for the homeowners at the servicer's expense or they will be forced to eat the whole thing in 60 days.