Insurance Companies Sue Bank Of America-Massive Mortgage Fraud, 91% Securitized Loans Misrepresented

[stockholmer]

http://www.zerohedge.com/article/insurance-companies-sue-countrywide-over-massive-mortgage-fraud-find-91-securitized-loans-ar

"The benchmark for documented mortgage originators' lies is getting higher and higher. First it was the Allstate lawsuit, finding massive fraud in most Countrywide/Bank of America loans, then it was quantified at 70% after Wells Fargo sued JPM's EMC division, now it is all the way up to 91% after a just released lawsuit by the bulk of the world's biggest insurance companies has been made public, in a fresh lawsuit again Bank of America/Countrywide over "Massive mortgage fraud."

To wit, from the lawsuit: "In carrying out its review of the approximately 19,000 Countrywide loan files, MBIA found that 91% of the defaulted or delinquent loans in those securitizations contained material deviations from Countrywide’s underwriting guidelines. MBIA’s report showed that the loan applications frequently “(i) lack key documentation, such as verification of borrower assets or income; (ii) include an invalid or incomplete appraisal; (iii) demonstrate fraud by the borrower on the face of the application; or (iv) reflect that any of borrower income, FICO score, debt, DTI or CLTV ratios, fails to meet stated Countrywide guidelines (without any permissible exception)."............

[xchrom]

1. Whoopsie! Nt

[gratuitous]

2. Uh oh, Banksters vs. Insurance companies

Is it possible for both sides to lose? Will this lawsuit go anywhere, or is it simply a negotiating tool? My guess is that some money will change hands, some empty promises will be made, and they'll reconcile for the sake of the shareholders, each vowing to cut the other in on the spoils next time. Just a misunderstanding, darlin'.

[RC]

3. You are forgetting the all empowering greed. The low hanging fruit is gone.

'bout all they have is each other. They are now turning on each other.:popcorn:

[Echotrail]

6. May I join you?

:popcorn: Been waiting for them to start devouring themselves. :popcorn:

[Last Stand]

8. Reminds me of when the Joker (Heath Ledger) met with all the crime lords.

Tried to warn them about just this kind of thing.:shrug:

[Bigmack]

9. Both sides will NOT lose.... We will! They're working on it now. nt

[dkf]

4. If the loans are forced back to the banks wouldn't they then have clear title to foreclose?

Wouldn't this be worse for homeowners?

[DCKit]

7. I don't believe they preserved the paperwork.

I'm not even sure they can grant a clear title to a property when the mortgage is paid off.

[ljm2002]

5. This is getting interesting...

...I wonder how wide this net is going to go.

It's about time someone held the banksters to account; too bad it's the insurance industry which is arguably an even worse crowd. Ah, well...