This page has been archived and commenting is disabled.
Bank Of America Finally Confirms Foreclosure Errors, And A Whopping Incidence Rate
Bank of America, which is gearing to resume foreclosures as soon as today, has just confirmed that it has "discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined starting last Monday." Assuming a nice round number of 500 or so tested cases, this means a faulty incidence rate of up to 4%. Considering that the bank has about 102,000 cases it is preparing to resume foreclosing on, this could mean that as much as 4,500 cases are about to put back. And who knows what else Bank of America is lying about?
More from WSJ:
Some of the defects seem relatively minor, according to the bank, and bank officials said they haven't uncovered any evidence of wrongful foreclosures. There was an address missing one of five digits, misspellings of borrowers' names, a transposition of a first and last name and a missing signature on one document "underlying" an affidavit, a bank spokesman said.
But the bank uncovered these mistakes while preparing less than 1% of the first foreclosure files that it intends to resubmit to the courts in 23 states. As the nation's largest mortgage lender, the bank is under pressure to show that its mortgage process isn't flawed amid revelations that many banks used "robo-signers" to approve large numbers of foreclosure documents without reading them closely.
Here is how BofA is backtracking out of its original lie that all was well:
Bank of America in several recent public comments about the foreclosure issue hadn't previously acknowledged even minor errors. Yet last week it uncovered a group of mistakes as it prepared to resubmit the first batch of documents and shared the information internally, according to people familiar with the matter. Executives are briefed twice daily about what was found.
When the bank announced Oct. 18 that it would lift a freeze on foreclosure sales in 23 states, it emphasized the accuracy of its internal review. "Our initial assessment findings show the basis for our foreclosure decisions is accurate," the company said in a statement.
In other words, criminally negligent until proven criminal with intent.
Elsewhere, Wells Fargo continues to pretend it sees no evil, sign no roboevil, even though it has already been caught redhanded after a sworn deposition by a robosigner confirmed the bank engaged in comparable practices. Of course, the downside there is pretty bad for one Warren Buffett, so expect only a full-blown subpoena coupled with a Cease and Desist order, most likely from the Ohia AG, to do something about the bank changing its criminal ways.
Several statements from bank officers about foreclosure practices have come under scrutiny. Wells Fargo & Co. Chief Executive John Stumpf on Oct. 20 said: "I don't know how other companies do it, but in our company the affidavit signer and the reviewer are the same team member." Days later a deposition emerged from a bankruptcy case indicating that Wells Fargo had in fact used a robo-signer who didn't verify documents she approved.
A Wells Fargo spokeswoman said "we don't believe any of those cases or depositions should be taken out of context. If we find some errors and need for improvements we will take that action."
Regardless, we expect the foreclosure "resumption" by BofA to be postponed indefinitely at this point, especially with both Gross and Dudley now involved, and others like Bill Black calling for the full nationalization of the bank based on years of unmitigated criminal activity. And yes, the plaintiff bar is about to release a full blown onslaught against the TBTFs.
»
- 8850 reads
- Printer-friendly version
- Send to friend
- advertisements -
send lawyers, guns and money...bitchez!
These fukkers are just going ahead brazenly and beat the people down with their lawyers and bought off judges.
The multiple connections between these private equity firms which own all those robo-signing services and legal operations (FTV Capital, Tailwind Capital, Great Hill Partners, and Ares Capital) and Goldman Sachs, JPMorgan Chase, Morgan Stanley, BofA and Citigroup are simply enormous.
Truly, the banksters have complete command and control of the entire fraud process!!!!!!!
(See original financing and ownership of: InterContential Exchange, ICE Clear, ICE US Trust, ELX Futures, Markit Group, RDC's Compliance G.R.I.D., DTCC, etc., etc., etc.)
LongSoupLine: "send lawyers, guns and money...bitchez!"
Yeah! Zevon!
"I was gambling on Wall Street...
I took a little risk...
Send lawyers, guns and money...
Obama, get me out of this. HA!"
"I went home with a porn star...
Like I always do...
How was I to know-ho-ho...
She was with the SEC, too..."
"I'm hiding in Mary's office...
I'm a desperate man...
SEC porn has stopped downloading...
The shit has hit the fan. HA!"
"Send lawyers, guns and money...
OBAMA GET ME OUT OF THIS..."
you fail the captcha. 25 of 500 is 5%
A slight downward blending
Or perhaps you lapsed in Wells Fargo context, where two plus two equals five and affidavit signers who testify to not having reviewed documents are one and the same person with somebody who allegedly did review them.
5 ??? more like 7
"first several hundred"
several means "a few".
"A few" means 3.
it's more like 8-9%
NO WAY! Several hundred means 200. 15-25 means 25(at least).
I get 12.5% minimum
Tyler, you wouldn't be sweeping under the rug technical errors about a story about sweeping under the rug technical errors?
Well at least your errors don't throw people on the streets.
The punchline is, as per always:
"Better than consensus"
LMAO
Of course, the errors they admit to will be the ones that don't make them look too bad. (Where have I seen this before?)
Classic example of admitting they have the wrong feed for the animal they have on premises without admitting that they have an elephant rather than a house cat on their hands. Discuss wrong paperwork or missing signatures without ever discussing if the documents are in fact legal or if the fraudulent securitization process effectively stripped them of the right to foreclose in the first place.
Pure PR spin vetted I'm sure by the lawyers well before it ever got to the PR department for the final spin and dry cycles.
At Citi, it was 40% and then 80% for mortgages rep and warranted (not underwritten) in 2005 through 2007 according to testimony last April. Why has this not really seen the light of media attention day 6 months later?
So many securitized MBS are going to be put back, litigated, and turn the mortgages scene into molassas.
Not to worry...the FED is conducting it's own investigation! Bernanke will soon have everything under control in the "alleged" MERS problem.
You can almost feel the sweat as the realization sinks in that the Atty's General have taken this ball and are about to break away for TD run to the end zone. How can they be stopped now?
Flash !!!: The Fed to buy all mortgages with questionable paperwork. Property ownership in the US for the too poor to fight back is suspensed for the good of the state.
Rightly so. I just finished reading this :
http://news.goldseek.com/MillenniumWaveAdvisors/1287961646.php
where John Mauldin regurgitates the phlegm laden corruption of Citi, BOA etc. Banks have deliberately placed this country on a path to mayhem. When will they be held to account?Reiterating Mauldin; there are a lot of travel plans being made, to destinations sans extradition agreements with the US.
I just have a problem with the banks deciding that they would create their own system that superseded local government laws in the recording of deed and showing clear title.
I wonder if BAC is considering these types of illegal activity relating to MERS as "errors".
For those who may have missed the stockholder list for MERS:
http://www.mersinc.org/about/shareholders.aspx
One of their newest members:
Good Deeds Mortgage Company, Inc.
"discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined starting last Monday."
They are not admitting to the real error.... which is the foreclosing party lacks "standing" to foreclose.
Robo-signing gate was just the smoke screen to get the lemming back in line. All these investigations will lead nowhere until the home owner figures out the assumption that is not true.
+1.
you hit the nail on the head.
+1
This is a distraction. "Look at the misspelling on page nine." If everyone would simply focus on that, then we won't notice that 100-out-of-100 have no legal standing.
Game theory. They need to hurry-up-and-foreclose-as-much-as-they-can before people wake up. It's merely an asset/capital seizure. If they can grab enough, they can justify that they should continue to exist in some form (even if they must all become government employees).
+1
Robo-signing gate = smoke screen
Indeed. Been saying this since the whole thing came into public knowledge a few weeks backs.
No surprise. You are always right and quite apt at predictions.
+1
Good point, it's very much misdirection. The lack of legality of securitization is the real issue.
Not to mention the fraud of double/triple selling the same asset back to the peoples retirement accounts.
+2
and a big o
n
e
for your two
BOA 'discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined'.
How hard did they look if they can only tell us it was 10 to 25 errors ? That seems to be evidence that they haven't even decided what an error constitutes.
Does this sound like 1) ready, 2) shoot, 3) aim ?
It sure sounds like that song.
Ya gotta love "Boom boom, out go the lights!"
yes, how low exactly is this lowball figure? will we find out, as they beg for TARP 2, that they didn't find all the data necessary, and ... o my...the rate is actually 3x this?
it was countrywide, after all......and mozillo is off now.....so....
I only care how it affects the market and it's having zero affect.
Somebody decided over the weekend that this thing is going to break out. Maybe the Fed is paying the HFT's to bid up the market.
And those may be the ones that belong to a group that they thought they could fix the quickest.
interesting play on words in these banksters press releases..."bank officials said they haven't uncovered any evidence of wrongful foreclosures."
Notice they DID NOT say THEY had not uncovered evidence of THEM wrongfully pursuing foreclosures.
Their printed statement only says that in all the foreclosures that were pursued it was clear the borrower defaulted on payments.
lol.
You don't uncover much when you're not looking either. After all, OJ never found the "real killer" no matter how many golf courses he visited.
I understand that OJ's gone undercover in a Nevada jail/prison to continue pursuing the "real killer(s)!" :>D
Noo, 4% they ADMIT as errors. Hence, probably ~40% that either defendants or courts would find as faulty.
"discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined starting last Monday." Assuming a nice round number of 500 or so tested cases, this means a faulty incidence rate of up to 4%."
Let me get this straight--they examine "several hundred" cases at a level of detail sufficient to determine their adequacy, and then--even having evaluated these cases with individual care--cannot provide an exact number of errors? The number of "discovered errors" itself has a margin of error of +/- 43% , i.e. 17.5 +/- 7.5, as if it were a highly speculative probabalistic estimate? WTF? Can these fuckers even count on their fingers?
Think about it!
Unbelievable.
+43% (although the number of tested cases seems to be the writer's guesstimate).
It may also be interesting to know how exactly they selected those "samples". For all we know they could have asked a less criminal branch office or subsidiary to send 1-2 boxes of their cases to make them look good.
If you know how audits of this type are performed in the real world of office managers and their employees supplying cases by which their competence will be judged, you know the likelihood of cherry picking is roughly 100%.
+100! Cherry picking indeed.
Public accounting works like this as well. What 20 something y/o wants to find mistakes during an audit? It means extending his/her day another 3-5 hours. Ghost tick.
Okay, Bob, I have been thinking about it. In order for a range of the number of screwed up cases in their sample to make any sense whatsoever, it would have to apply to some recurring number of sampled cases--say, per one hundred cases of the "several hundred" sampled. That would suggest an actual error rate of 10%-25% on the total sample of cases.
Is anybody else struggling to make basis sense of this data?
just tell them the incarceration rate will be somewhere between 10-25 of the first 100 executives
That's my take as well. You use the 10-25 nomeclature for percentages, not for hard counts. Tyler is probably a little too generous to them as well. Several hundred cases could be anywhere from 101 upwards.
Regardless of misleading statements in their release, there is another story being buried here, which is the rate or review. Even if we take Tyler's generous 500 cases reviewed, with only 102,000 cases it'll take them 204 weeks (roughly 4 years) at this rate to review each case and then get them back into the foreclosure process.
That's a LOT of money not only tied up by the homes on the books that are no longer generating revenue, but a ton of money going into the actual review.
Another very good point. My fear, however, is that a relatively "small" putative error rate of 5% would appear to support moving forward with foreclosures, rather than a wholesale review of all cases--in spite of the real world reality that every single erroneous "case" represents a family being illegally evicted from their home.
It also provides for extreme low ball estimates of appropriate loss provisioning, which allows payment of $144B in bonuses industry-wide before reality asserts itself.
Stats like this wouldn't get you credit on an essay question for an undergrad stats course in the Social Work department. . .
yes, it appears the Fed is pushing with the HFT crowd to break out the market.......last gasp attempt to get the peasants back to hold the bag....
good luck....moved to major cash position last week...why am i not tempted to buy AMZN at 171 ???
i dunno.....
Don't underestimate the fed. I wouldn't go short against a printing press in the same currency as the printing press.
On Saturday, I received a letter from the lawyer suing in foreclosure for BAC, FKA Countrywide, telling me that I may be eligible for "up to" $6670.00 for a deed in lieu... I had a chuckle because what this indicates is that the complaint, filed in March, has not been moved forward by the lawyers (who now, in NY, have to verify the veracity of their client's claims, meaning the lawyers are now on the hook for the fraud BofA has committed - I have robo-signed assignment and more, but they probably don't have the note).
There's also a little class action in NJ against BofA and the 50 AGs who will soon be demanding a cessation of foreclosures. Evidence of fraud continues to mount, especially against BofA. I am nearly certain that they will go down. Chart pattern very similar to Countrywide when it went from 17, to 10, to 7, to 5, to 3...
Once the elections are over, watch the fireworks.
BTW: An error rate of 5% is hilarious. Try 50%, probably closer. Here in NY, the judges have had it. One law firm - Stephen J. Baum, I believe, has already been indicted. The lawyers handling my FC is the #2 FC mill. Could be added to the complaint any day.
What the new rule in NY has done is put lawyers on notice that they may face sanctions if they don't check their client's claims. In other words, the bank better produce the note for the lawyers or there's a very good chance they won't proceed.
Its time for lawyers to get out there and make me proud!
I don't have a mortgage on my house, but, I only go grocery shopping at night now. I'm afraid if I go during the day there might be another family living in my house by the time I get back.
Don't laugh too hard. My uncle in Orlando said the cops came down his street and removed the family that had been living in the vacant house four doors down for three months. Said they didn't have utilities on, total squatters.
Gotta check out this story on the potential exposure BAC has...price target $2.50 ? http://www.businessinsider.com/bank-of-america-mortgage-report-2010-10#-1
These banks know what they are doing, they are not insolvent for nothing.
I think there's more than enough evidence to support the idea that the Bank of Lynching Countrywide can't do statistical analysis to save their lives. I can see the selection of files now...a hand moves closer to a file folder, as the auditor's fingers touch the file a loud cough emanates from across the table...he moves to another folder.
They naked shorted mortgages; the juden sold multiples of what they "loaned" to pension funds and foreign countries, sold those mortgages, intentionally wrecked every Western economy, and now are trying to foreclose on homes to which they have NO TITLE. I hope people start getting shot over this.
I hope people start getting shot over this.
Using a page out of their own playbook, it only take a few and the rest start to fall in line.
One would hope that line is against a wall, blindfolds and last cigarette optional.
Why waste a good cigarette?
Why waste a good bullet?
We'll retrieve the casings for future use.
Yet another crisis that isn't a crisis for the market.
In case you haven't noticed DOW +100.
Since we've been here about a million times already, any chance we can finally concede that all of this information is just useless? The fed/treasury will backstop everything in perpituity and the markets are not going to crash. Europe is going to gripe but they'll be just fine. The consumer is not really back but they're not really gone. Housing is screwed but it doesn't really matter to the 80% or so who are still working. UE will never fall below 8% but will stay under 15% so no one cares. The states soon enough will be bailed out by the feds, yawn...
The world will not grow to be perfect but niether will it end. Trade the market in both directions with the understanding it will have an upward bias as there is no end to the "easing" to come. Accept that no grand revolution is about to hit the streets; we are not France and besides we saw what that accomplished anyway.
So, as the singer so aptly sang in the 80's: "Don't worry, Be happy!"
In HELL there won't be any errors!
as long as they "round up"
Rawhide!
Oh, and by the way, NO ONE is going to be scolded for any of this stuff, much less prosecuted.
Get over it; it is done. Wish the bad guys would pay, but there is no Lone Ranger in the world today. No justice, no fairness. It is the way it is. Money will fall from the heavens (FRBNY) and all will be made whole. Well, for the banks anyway.
So, buck up men and enjoy the day you've been given.
4,500 x ~ $300k avg
what's a trillion worthless greenbacks between friends??
No problem, i got this ZH'ers. Umm, they will accept my $100,000,000,000,000 ($100 trillion) dollar currency note from Zimbabwe. Yes. Yes? Um, hello?
4500 * $300,000 = $1.35 billion
Welcome to math.
you mark-to-marketer you...fear not, they'll just sell those 1000 times
Wow this news is killing BAC - down .7% as I type.
May we assume that you're long at $11 and change, then? Buy a big block now!
What they need is a Gypsy Curse to wither them away to nothing.
You can't trust a thing they say.
Example: January I did a vid of a foreclosure, dude representing "bank" didn't show up till just about every one had left, 5 hours after dude said he would be out there. He read off and did the bid: Sold to "bank," in each case.
When the recorded foreclosure deeds hit the record, they didn't say sold to bank, they said sold to some other company. NOBODY else made a bid. NOBODY else was even standing there or paying him any attention.
I used a camera on a tripod set 65 feet away, in plain view. And the sound was recorded with a Sony wireless Mic. So, this isn't slander.
------
On a lighter note, they were outsourcing Title Exams to India and the Phillipines. The problem, is that we didn't have enough documents scanned and available online to do a legitimate title exam, but they charged the big price on the HUD-1, didn't they?
Whether you look at the new or old testament of the bible, the kind of fraud these people have been doing doesn't fly. The example in the new testament: http://en.wikipedia.org/wiki/Ananias_and_Sapphira They lied about their deed and the proceeds.
These cats we are dealing with now, they conjured up a way to turn making loans that were sure to fail into a profit--or so they may have thought. Perhaps the real objective was to destroy the economy. No matter, their true objective--their real scheme-- is irrelevant.
Look at it, call it what it is
and more layoffs at the foreclosure mills:
Stern’s DJSP announces 300 layoffs South Florida Business Journal - by Paul BrinkmannDate: Monday, October 25, 2010, 10:45am EDT
Fallout from the national foreclosure crisis continues to impact companies associated with foreclosure attorney David Stern – one of the leading foreclosure attorneys in the nation.
His law firm has filed tens of thousands of cases on behalf of lenders and mortgage agencies such as Fannie Mae. The firm has been under investigation by Attorney General Bill McCollum for allegedly creating false documents in foreclosure cases.
Here’s the latest: The company that conducts support work for Stern’s law firm, Plantation-based DJSP Enterprises (NASDAQ: DJSP), now admits to about 300 layoffs since “recent developments” began.
I first reported that Stern’s law firm and affiliated companies were laying off hundreds of people on Oct. 12. At that time, Stern’s attorney, Jeffrey Tew, said there were fewer than 100 layoffs from the law firm, and they were temporary positions.
Another departure from DJSP’s board of directors was announced Monday – that of Mark P. Harmon, a Boston-based foreclosure attorney. We reported on the Oct. 19 departure of several officers and that Stern had relinquished the chairmanship of the board.
DJSP’s stock slipped briefly below the crucial $1 mark last week. The stock was up 7 cents, to $1.11, in Monday morning trading. NASDAQ’s policy allows it to delist stocks that fall below the $1 mark for 30 days.
Stern’s law firm has struggled with declining case volume since major lenders started putting a hold on foreclosure action in September, according to DJSP’s news release about the layoffs. Mortgage giants Fannie Mae, Freddie Mac and Bank of America have stopped sending cases to Stern’s firm. The public company, DJSP, is dependent on paperwork processing from Stern's law firm.
The law firm has defended itself in court against McCollum’s subpoena, calling his investigation overly broad and illegal. But, a Broward County judge has ruled in favor of the subpoena.
In broader related news, The Wall Street Journal reported Monday that Bank of America acknowledged some minor mistakes in foreclosure files as it begins to resubmit documents in 102,000 cases. The paper also reported on its website that Federal Reserve Chairman Ben Bernanke said the agency was “seeking to determine whether systematic weaknesses are leading to improper foreclosures.”
Read more: Heard Along the Coast | South Florida Business Journal
wrong letter, wrong number....hog-shit! That is "NOT EVEN CLOSE BUD" to the real problem here. Obviously they found some of the physical loans or notes but what about that pesky title chain? broken? where is the note?
Nobody is saying these dirtbags dont deserve to get booted from a crib they couldnt afford but I hate BAC more since they are the biggest dirtbags ever.
pr bullshit....complete pr.
Well now how many robosigners can we robodepose per day when this REALLY gets going?
Next time I make a bank deposit, I'm going to hand them a stack of around 10 to 25 bills.
"There was an address missing one of five digits, misspellings of borrowers' names, a transposition of a first and last name and a missing signature on one document "underlying" an affidavit, a bank spokesman said."
It occurs to me that any one of these errors would get people killed if the paperwork was a search warrant...oh wait, it could still get people killed if it's an eviction.