US Homeowners Launch Class Action Lawsuit -LIBOR

[Deleted]

My condo in San Diego has a mortgage based on the 1 year LIBOR so I do periodically check it. The rate actually ticked up .25% this summer. The bank that services the loan is PNC who took over National City Mortgage Corporation. They aren't named as a defendant in this lawsuit.

This seems to be a rather odd lawsuit. From what I read in the Economist earlier this summer, the LIBOR was being accused of being manipulated artificially LOWER to keep Bank's costs lower given the amount of risk associated with borrowing from each other. I sure hope this lawsuit doesn't backfire on the borrowers!

[chiver78]

Oct 15, 2012 13:06:23 GMT -5 @wrongsideof30 said:

Oct 15, 2012 12:52:55 GMT -5 @bonnap said:

My condo in San Diego has a mortgage based on the 1 year LIBOR so I do periodically check it. The rate actually ticked up .25% this summer. The bank that services the loan is PNC who took over National City Mortgage Corporation. They aren't named as a defendant in this lawsuit.

This seems to be a rather odd lawsuit. From what I read in the Economist earlier this summer, the LIBOR was being accused of being manipulated artificially LOWER to keep Bank's costs lower given the amount of risk associated with borrowing from each other. I sure hope this lawsuit doesn't backfire on the borrowers!

I was reading in the comments section that homeowners were saying the LIBOR would tick up slightly at the beginning of the month when their mortgage was calculated and then tick back down.

is that why my payoff value fluctuates over the course of a month? I've been trying to figure out why that happens.

[chiver78]

ooh, no. mine's fixed rate. but the payoff value fluctuates as much as $1k over the course of a month. I've played with the payoff preview calendar enough that I've noticed.