Turns Out ANON Leak IS Smoking Gun: BofA-Docs Show "INTENTIONAL FRAUD FOR PROFIT"

[kpete]

Anonymous Leaks Indicate Widespread Insurance Fraud -- And Show How Banks Made More Money Dragging Out Foreclosures

It took a couple of days after the Anonymous leak for the contents to sink in, but I finally connected the dots. Rodgers was more than a victim of bank abuse -- this was systematic outright fraud throughout the mortgage and banking industry. It wasn't just Wells Fargo.


Horwitz says JPMorgan Chase wouldn't tell him what insurance company they used for reinsurance, but figured out that Assurant's annual report "describes precisely such a relationship from an insurer's perspective."

In an effort to align its interests with its servicer customers, the company will often reinsure the policies it writes with the same servicer that requested them. "Such arrangements allow significant flexibility in structuring the sharing of risks and profits on the underlying business," Assurant notes.

The interests of the two parties are so aligned, in fact, that in many cases there ceases to be a clear difference between the entity purchasing insurance and the entity selling it.
http://www.americanbanker.com/issues/175_216/ties-to-insurers-servicers-in-trouble-1028474-1.html?zkPrintable=1&nopagination=1

So if it's accurate, the Anonymous leak is the smoking gun in this mess. Because it indicates from Bank of America's own internal documents that this was intentional fraud for profit, and explains just why mortgage companies were dragging out the foreclosure process -- and refusing modifications

They were making so much more money on the re-insurance policies, it didn't pay to modify.

http://crooksandliars.com/susie-madrak/we-can-track-widespread-insurance-fra

The Daily Bail, writing at Seeking Alpha:

It also becomes clear that the interests of the servicer and the insurance company are aligned against the interests of both homeowners and investors. This is because servicers in many cases are reimbursed for the insurance they purchase on behalf of borrowers out of the proceeds of foreclosure sales, foreclosures which they helped bring about through overly expensive force-place insurance policies. That is, the servicers get paid before investors and by over-charging for the insurance in the first place the servicers are able to extract even more money from the investors they are supposed to be working for.

Where the situation gets really interesting is when a bank like BofA actually owns the insurance company, as in the case of Balboa. In this email, the Balboa employee appears to be saying that errors in tracking of mortgages were common, but that he had more incentive to blame outsourced clerical workers for errors, thereby reducing the fee Balboa paid to the other company for handling the paperwork, than he had incentive for actually preventing such errors in the first place:
WAY MORE HERE:

http://seekingalpha.com/article/258082-bank-of-america-leak-exposes-alleged-force-placed-insurance-fraud

[villager]

1. How fortunate, then, that the new administration has been right on top of such fraud!

Oh -- wait....

[Enthusiast]

33. I agree.

With the sentiment behind your post. Whose side are they on, anyway? It certainly doesn't not appear to be "we the people".

[villager]

60. Eh?

Did I really need a sarcasm smilie for my header? :shrug:

[gateley]

69. No. We get it. nt

[Enthusiast]

73. I understood you completely.

Thats why I agreed.

[ThomCat]

80. The companies committing fraud have bribed this administration

and both parties to look the other way. They call it "Lobbying," and "requesting that they be cautious before pointing fingers" but it amounts to the same thing. They get paid a huge amount of money from the people who commit fraud, so they refuse to take any actions against those criminals, and refuse to allow any investigations to take place that would even officially name them as criminals.

We, the poor people who become their victims don't have lobbyists like they do, and we don't pay politicians millions of dollars in bribes, so it's okay for us to be systematically fleeced.

That's what most of them really seem to believe our role is supposed to be in society. We do all the work to generate the resources and provide the opportunities for all of Them.

We don't do all this work so that we get to keep any of it for ourselves. That wouldn't be right in a capitalist, free-market society, and of course we all know that they love their capitalist, free-market society, don't we. :eyes:

[russspeakeasy]

63. Is the new admin even aware that there is a problem?

I have not heard them acknowledge it as anything other than
angst and impatience by us "professional lefties".

[ChairmanAgnostic]

72. Bill Daley is calling that fluff outside the bloatway,

to be ignored as a mere distraction.

What the HELL is wrong with this president?

[EFerrari]

2. Thanks, kpete.

[northoftheborder]

7. Other things working pertaining to this issue.......

I heard or read that the Dept. of Justice is negotiating a deal with the banksters that, in exchange for not charging banks for various wrong doings pertaining to mortgages, they (the banks) have to mark down all these mortgages to face value, and start afresh. Or something to that affect. anyone else know about this? And then, where does this leave the DOJ with prosecution of this new evidence of fraud with the reinsurance? things are rotten in Denmark, whatever happens.


See post below for explanation of what I am trying to say:

Foreclosures: Help is on the way via WH-- but for who?

[EFerrari]

11. I don't believe that mark down will ever happen.

Homeowners will keep taking the hit and Wall Street will keep taking the bonus.

A mark down was the obvious, sensible solution but it would have meant that the gangsters' take would shrink.

Obama will never do that, imo.

[eilen]

49. Obama Pressing for a “Shock and Awe” Mortgage Mod Program, 3 Million in 6 Months

Obama Pressing for a “Shock and Awe” Mortgage Mod Program, 3 Million in 6 Months

http://www.nakedcapitalism.com/2011/03/obama-pressing-for-a-shock-and-awe-mortgage-mod-program-3-million-in-6-months.html


This is pretty bizarre. It reads like HAMP 2.0. Notice that the banks are NOT being required to make principal mods. The story simply states, “reduce monthly payments”. So the $30 billion is presumably for a combination of servicer costs, payment reductions, and some second mortgage writedowns (since the Administration has stressed that these modifications are to come out of the hide of banks, I am curious as to how a bank would compensate a securitization trust for a first mortgage mod)."


But $30 billion for 3 million homeowners, even assuming every penny went to principal mods, is a mere $10,000 per borrower. If you assume the bottom end of the target participation range (1 million), the maximum dollar amount ($30 billion) and modest budget for servicer costs (10% of mod amount), the highest average you could expect is $27,000 per borrower. That’s helpful but unlikely to be outcome changing for borrowers in distress. So this exercise appears to be about maximizing participation rather than really rescuing anyone. So this exercise appears also to be a stress test 2.0: that the Administration can uses this initiative as a way to talk up real estate and put a floor under the housing market.


The Administration’s argument may also be that if the banks do widespread mods, they can also get consumers to waive their rights to litigate. That may be the real rationale for a broad-but-shallow strategy. No Federal or state governmental body can waive a private party’s right to seek recourse. But do the banks buy that they have real liability from chain of title issues? They appear to be in deep denial on this front, given the lack of investor lawsuits. But we are told that the reason that those who have studied the question haven’t acted isn’t that they think they have a weak case, but if they prevailed, it would blow up the banking system, which isn’t exactly in their interest. But if they came up with a more limited basis for action, they might well proceed if only to pressure servicers to do meaningful principal mods.
......
But even with this new desire by the officialdom to press forward, it isn’t clear the other moving parts will line up. The Administration is also pushing the state attorneys general to wrap up their settlement. But that group appears to be fracturing, with defections expected on the Republican side and probable among some Democrat AGs as well (the article mentions New York’s Eric Schneiderman as a possible holdout; we are also told the Nevada AG Catherine Masto is not keen about the deal). The banks also want a pound of flesh to come from Fannie and Freddie, which makes sense given that we have gotten reports from readers of HAMP mods being approved by servicers and nixed by the GSEs.

This is all very curious indeed. My gut (and it could prove to be dead wrong) is that there is no negotiating space between the banks and the Administration, that the bid and offer are too far apart. The haste on the part of the Administration to wrap things up is not likely to help them in the absence of a real threat; undue eagerness to strike a deal is usually a sign of weakness. But the $30 billion may also be on the table to give room to negotiate down for the banks to save face. Since the Obama Administration has never been very good at negotiating, the results even on a level of bargaining are likely to be underwhelming.

[Hissyspit]

17. Hmm.

Where are those people who posted on my original thread on this who said there was nothing to the leak?

[EFerrari]

21. Hopefully not driving. n/t

[bengalherder]

61. On another thread complaining

That Anonymous can't deliver because THEY haven't seen the e-mails yet even tho they've been up since monday as promised. Srsly.

[russspeakeasy]

62. They will ignore this post and go slimely on their way.

[stockholmer]

75. HB Gary must have pulled the plug on their 'personas'

:fistbump:

[white_wolf]

3. Too bad are government is so corrupt they'll just ignore this.

[laundry_queen]

6. Half of them probably have a hand in this, somehow. nt

[HughBeaumont]

51. That's because the government isn't even in charge of the government anymore.

Corporate America is in charge. Of EVERYTHING.

[uponit7771]

4. basically if there was no PMI insurance they didnt' have a payment garuntee...wow

[leftstreet]

5. K&R

Thanks for posting this

[Mojeoux]

9. K&R Too Pissed to Comment!

FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~vFUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~
FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~vFUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~
FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~FUCKERS!!!!!!!!!!!!!!~!~:mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :grr: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke: :nuke:

[Kurovski]

16. +1

[xchrom]

8. Recommend

[SolutionisSolidarity]

10. I'll add my voice to those wishing that we had cops on the beat.

If the administration was willing or capable of investigating corporate fraud on Wall Street, we wouldn't need Anonymous to find out this kind of stuff in the first place.

[defendandprotect]

22. Imagine all the people alredy hurt by this, probably w/o any possibility of ever

seeing a recovery -- unless everyone got together in one suit?

There were supposed to be a million more foreclosures this year -- ?

Can't say I completely understand this -- except that this has always

been clearly criminal activity!

[Enthusiast]

34. We know what the SCOTUS

would do with a massive class action lawsuit. The corporate majority might even use the opportunity to rule that class action suits are unconstitutional.

Have the American people ever been so thoroughly betrayed by the government of the U.S.? The answer is a resounding NO! This is betrayal plain and simple. Our government has actually become our worst enemy.

[defendandprotect]

56. True -- this right wing court is doing what it was intended to do -- take us backwards ...!!

[Autumn Colors]

12. I'm going to be getting foreclosed on by BoA

They are already holding enough in escrow to pay the annual homeowners insurance premium that will be due in early June. After reading this over, I called my insurance agent and notified him about the impending foreclosure and told him I'd be in touch with him around the payment due date to make damn sure BofA pays that premium (because I probably won't be getting kicked out until July) and doesn't pull something like this.

I also plan to contact the town regarding the property tax payment that will be due in early July.

They absolutely have been dragging this out. I offered to do a deed-in-lieu of foreclosure and they dragged that process out where the person assigned to me took several weeks to get back to me just to tell me where to send all of my financial info (showing massive drop in income). After all of that, they declined the offer and this will go to foreclosure (no possibility to do a modification based on my current income).

I can't tell you how much I despise this bank and I hope Anonymous and Wikileaks destroys them.

[BlueIris]

30. Here's hoping BofA reaps some seriously bad instant karma over this.

Or, you know, faces real, actual criminal charges.

[Snoutport]

13. we need a knight in shining armor to take these guys to jail

this is the time that america needs a really good public prosecutor. :0) he would be a hero!

[Enthusiast]

35. He would be a hero?

He would be dead.

[WinkyDink]

44. Many heroes meet that fate.

[cui bono]

76. In small airplanes. n/t

[Kurovski]

14. How long, oh Lord how long?

So, like, can we at least reinstate the laws we had prior to 1999?

[fascisthunter]

15. here's part of the VAST right wing (fascist) Conspiracy

[Enthusiast]

36. This is how they funded the conspiracy.

Anyone that believes the rule of law still exists is sadly mistaken.

[russspeakeasy]

64. You, Enthusiast, are CORRECT.

This government has changed, probably forever. The rule of law
only exists in select cases and is applied at will.

[RainDog]

18. k&r n/t

[DeSwiss]

19. I will be surprised.....

...if this administration does one damned thing about these revelations. Other than ignoring it more than they already have.


- I mean, what are friends for???

[slipslidingaway]

20. knr nt

[Initech]

23. The real crooks.

[defendandprotect]

24. KR

[Segami]

25. K&R

:kick:

[Phlem]

26. looks like the bankers

got the change they hoped for in President Obama.

And I thought he was talking about the American people in his speeches.

And I was only to happy to vote for him.

I feel dirty.

Time for a shower.

-p

[WinkyDink]

45. And not chump-change, either.

[JDPriestly]

27. OK Now I understand this.

And this scam is not at all surprising. Just another day in the life of the banking class.

Griftopia Matt Taibbi calls it.

I hope the investors sue. Homeowners might be able to put a class action suit together. I don't know whether that would be possible.

I remember a successful class action suit against title insurers that involved even less money per mortgage. So, there is a chance. But I don't know.

[Mnemosyne]

28. K&R for more visibility. n/t

[sabrina 1]

29. Remember Geithner being grilled about WHY there had not

been more Mortgage Modifications and why the money allotted for that purpose had hardly been used? He was furious, kept saying inane things like 'we never committed to helping everyone' but when pressed that this was not the point, the point was that money had been allotted to help keep people in their homes and very, very few had been able to get a modification.
!
Elizabeth Warren was relentless when she questioned him over this. Makes me wonder now if she suspected something like this.

I wondered about it also, when Wells Fargo refused and ignored all the requests made by my friend to adjust here mortgage since she qualified under the rules of Obama's 'keep Americans in their homes' act. They never answered her calls, so she sent them partial payments, afraid of getting further behind. They returned those payments. It made no sense. And the house was empty for nearly a year when they could have been getting payments on it.

Now I understand!! I can't put in words how evil this is! But I already did read during a court proceeding, that some of them had multiple ins. policies on the same home, so when a person defaulted, they collected on more than one policy. In that case, which I wish I had book-marked, the judge was furious and awarded the home to the person the bank wanted to foreclose on.

It sounds like they had different Ins. scams going on.

This BETTER be prosecuted! They threw so many families out of their homes. I don't know what to call these people. Criminal just doesn't describe them, even 'evil' doesn't do it.

Unbelievable. But our current DOJ is not in the habit of prosecuting real crimes, so I'm not expecting them to go after these thieves.

[Enthusiast]

37. We need to ask,

"What did the President know and when did he know it?" I am ready to put every damned criminal from the Bush and Obama Administrations in prison for life. They deserve no less.

[sabrina 1]

55. Anyone who knows about these evil, treasonous scams

and they ARE treasonous imho, and covers for them, is also guilty. I agree with you completely.

When someone said that the bailouts were the 'Biggest Bank Heist in History' I thought it was a bit hyperbolic, but now it is clear it was absolutely correct and no one seems to looking for the robbers.

[russspeakeasy]

65. With his superior negotiating powers, I'm sure he got something,

don't you? I wonder what it could have been?

[Shining Jack]

74. New bikes for the kids?

:shrug:

[Selena Harris]

40. Remember the dead peasants insurance policies

that were taken out on employees-with the corporations as benficiaries--policies that remained in effect EVEN when the insured employee had LEFT the employ of said company,in some cases, MANY years before? (Wal-Mart was notorious for the use of these policies.)

The policies were a write off for the corporations...then they cashed in when the employee died.

And guess who was the biggest purveyor of this? AIG.

All this scamming of insurance brought this issue to mind.

And to add insult to injury, these shysters STILL own the physical land-the REAL real estate.

[secondwind]

31. I wonder if this will eventually bring the Bank down. I know someone who just took a job with BoA.

[Selena Harris]

42. Maybe Assange has the BofA docs that are the

"silver bullet" to go along with the smoking gun.

[Jakes Progress]

32. We will eat it.

We do not have a president or a congress that is willing to enforce laws or even fair practices.

Instead our elected Democrats and the republicans are doing and will do all they can for the moneyed class and for the corporations. There is no evidence to the contrary.

[russspeakeasy]

66. We will eat it..And we damn well better enjoy it.

[Major Hogwash]

38. Congress should investigate them right now!!!

But, they won't.

[indimuse]

39. Thanks kpete! knr n/t

[WinkyDink]

41. Thus, let's incarcerate and torture the documents-leakers.

[gimama]

43. kick..important! thx! nt

[aquart]

46. Don't suppose it will interest Holder much.

[Plucketeer]

58. Holder ain't holdin' none of these crooks accountable

He's just one more facet of this Corp-serving administration. :grr:

[WinkyDink]

47. It isn't that the Corporatists have won. It's that THE CRIMINALS HAVE WON. CRIMINALS WHO LOOT AND

LAUGH ALL THE WAY TO THE....OH, WAIT; THEY ARE ALREADY IN THE BANKS.

[Fuddnik]

48. Just went through it for the third time with Wells Fargo.

I'm not late on any payments. In fact, I'm usually two weeks early, always.

They've bought forced place insurance for me three years in a row, claiming that I didn't have homeowners or flood insurance. This time they bought it after I sent them my declarations pages TWICE!

I never had this problem with Wachovia. Only since WF took over.

I sent them a fax the other night telling them to stick it up their safe deposit box. I just moved all of my other accounts to a credit union. And today I clear out the safe deposit box.

Fuck Them.

[colsohlibgal]

50. No Big Mystery

It's just stunning that the people who created the Wall Street crash are not languishing in prison. Far from it, the CEOs and big shots got to walk away with hundreds of millions apiece - and some of them were picked by Obama for his financial braintrust - which shows us what a closed game this is at the top, it is just republicans who wink at all the fraud. In the Senate the slimiest is Dodd.

The one Wall Street fraud merchant serving serious time at this point id Bernie Madoff - because he ripped off the well to do, not the middle class.

It's right out of Orwell's book, there is little in depth coverage of these crimes of pure runaway greed, even with tons of evidence.

It's all so frustrating but maybe now, finally, more of the masses are getting tuned in.

[bvar22]

67. Thats not true.

The also caught that master criminal, Martha Stewart,
and threw her in jail.






Who will STAND UP and represent THIS American Majority?
Platitudes, Rhetoric, Empty Promises, and Excuses are meaningless now.

"By their WORKS you will know them,"
And by their WORKS they will be held accountable.

[felix_numinous]

52. K&R!!

[Zorra]

53. Anonymous is civil disobedience to the plutarchy at its very finest. Love 'em

[abelenkpe]

54. K & R

Don't panic. This is more proof that Banks were gaming the system. It is a slow process, pressure must continue, but I have hope that in the end there will be justice.

[CanonRay]

57. Hello? Justice Department? Anybody home?

Your call is important to us. Please leave a message at the tone, and we will get right back to you...............

[gateley]

70. Too busy going after Twitter accounts of WikiLeaks followers. nt

[lastone]

59. anyone looking for class action representation

could start here:
http://www.milberg.com/home.aspx
this form is looking into Citi:
http://cases.milberg.com/citimortgage/

may be a good place to start...

[20score]

68. Not true. I've had many Tbaggers and the radio tell me this is the fault of immigrants and the poor.

[wildbilln864]

71. k& friggin r! nt

[stockholmer]

77. Banks profit 6 figures on foreclosures & short sales, here’s how (great vid/article)

http://www.mygnhi.com/blog/banks-profit-6-figures-on-foreclosures-short-sales-heres-how/


video links

http://www.youtube.com/watch?v=ssl5yb7FewA


http://www.thinkbigworksmall.com/mypage/archive/1/29027


http://www.youtube.com/watch?v=kdJBNCGEVso


"One of my favorite things to do in the morning is watch the guys on ThinkBigWorkSmall. They did a show in February about why banks do not do loan mods. It has been really bugging me, so I am finally blogging about it. When I re-found this episode and watched it on youtube, the voices did not match the guys talking, but the info is there. The first time I saw this video, my mouth was hanging open. If this does not tick you off, your related to the people they are talking about and laughing all the way to the bank. This is what TBWS said on Feb 8, 2010:

IndyMac was seized by FDIC 6/2008

FDIC sold IndyMac’s assets to OneWest bank, 3/2009

Guess who owns OneWest? 3 guys, GoldmanSachs vice president Steven Munchin, and big time GolmanSachs billionaire investors Geoge Soros and John Paulson.

OneWest purchased these assets from FDIC at 70% of first mortgage values, and helocs at 58% of value.

FDIC promised to cover 80-95% of any losses OneWest may incur form home owners not making their payments.

In the event of short sale or foreclosure, the loss is calculated from the original amount purchased, not what is currently owed, or what the house is worth. Huh. Not too fair….

They give an actual example of a the numbers on a real case:

A new home owner took out a mortgage of $478,000.
Some time later, after he could not make his payments for six months, the bank adds $7,200 for missed payments. (Garbage fee’s)

$478,000 + $7,200 = 485,200

OneWest bought this loan for 70% of $478,000 = $334,600

Now, there is a short sale cash offer of $241,000 Take the $485,200 ‘owed’ and reduce it by the cash received from the short, and you get $244,200.

According to OneWest, they are losing $244,200.

Now, the FDIC is covering 80% of the loses OneWest incurs. So, if you take the $244,200 One west says it is owed, and times it times 80%, you get $195,360.

The FDIC pays this $195,360 to One west.
The short pays $241,000.

OneWest gets $436,360.!!!!!!!!

Remember, OneWest paid $334,600 for this loan!

Profit $101,760 thanks to this insane arrangement.

But wait, it gets better.

Still, the house was sold for less than the full loan amount.

OneWest forced the borrower to sign a promissory note for $75,000

OneWest profits $176,760

Read it again if you do not get it.

I think it is clear why they are not doing loan mods.

FDIC just announced they need to start borrowing money from the treasury;
the place GolmanSachs guys called home before they called OneWest Bank home.

And I wonder why I am cynical.........................."

[bluecoat_fan]

78. Nice con!

[Selena Harris]

81. Thank you for posting this! And by the way...

anyone who ISN'T cynical at this point either isn't paying attention,OR,they are themselves a part of the griftopia.

[upi402]

82. Thank you.. -kick- n/t

[shanti]

79. k&r

thanks for posting this~

[guruoo]

83. k&r nt