"Operation LeakS" Releases Initial BofA Emails Indicating Premeditated Intent To Deceive Government And Auditors
From Operation LeakS' site, http://bankofamericasuck.com, here is the initial release of what appears to be a whistleblower's (former employee) disclosure that Brian Moynihan's firm is lying to the Federal government. The punchline is that this appears to be a concerted effort from the ground up to hide foreclosure data from auditors and the Fed in order to obtain select preferential treatment in a variety of housing related axes, in many instances to accelerate foreclosures. As the whistleblower summarizes: "Balboa Insurance/Countrywide knowingly hiding foreclosure information from federal auditors during the federal takeovers of IndyMac Federal (a subsidiary of OneWest) and Aurora Loan Services (a subsidiary of Lehman Bros Holdings), falsifying loan documentation in order to proceed with foreclosures by fixing letter cycles in the system, reporting incorrect volumes to all of their lenders and to the federal auditors to avoid fines for falling behind on Loan Modifications, purposefully and knowingly adjusting premiums for REO insurance for their corporate clients while denying forebearances for individual borrowers, etc, etc, etc. In addition, if anyone can get me a copy of the image of the hard drive that Jullian Assange reportedly has from the BofA executive, it will not take a dozen financial analysis to decipher it like I've read in the news. I could find all the dirt on that hard drive within a week." We'll see if Assange steps up. In the meantime we expect Brian Moynihan to pull a Dick Fuld and tell a Congressional hearing he had no idea any of this was happening, leading to the termination of some mid-level employee, notably the person who invalidated the following concerns: "I'm just a little concerned about the impact this has on the department and company. Why are we removing all record of this error?... There is always going to be the paper trail when one of these sent documents come back, this to me, seems to be a huge red flag for the auditors...This just doesn't seem right to me." That's ok - it will most certainly seem right to everyone in "law enforcement." In the meantime, note the date: November 2010. This is not a Ken Lewis transgression (as we previously assumed) - this is all Brian, all the way.
The reason why the whistleblower is stepping up:
The core of the accusation:
My name is (Anonymous).
For the last 7 years, I worked in the Insurance/Mortgage industry for a
company called Balboa Insurance. Many of you do not know who Balboa
Insurance Group (soon to be rebranded as QBE First by Australian
Reinsurance Company QBE according to internal communication sent to all
Balboa associates) is, but if you’ve ever had a loan for an
automobile, farm equipment, mobile home, or residential or commercial
property, we knew you. In fact, we probably charged you money…a lot of
money…for insurance you didn’t even need.
Balboa Insurance Group, and it’s largest competitor, the market
leader Assurant, is in the business of insurance tracking and Force
Placed Insurance (aka Lender Placed Insurance, FOH, LPI, etc). What
this means is that when you sign your name on the dotted line for your
loan, the lienholder has certain insurance requirements that must be
met for the life of the lien. Your lender (including, amongst others,
GMAC, Aurora Loan Services [a subsidiary of Lehman Bros Holdings],
IndyMac Federal Bank [a subsidiary of OneWest Bank], Saxon, HSBC,
PennyMac [a collection agency started by former Countrywide Home Loans
executive Stan Kurland after CHL and Balboa were sold to BAC], Downey
Savings and Loans, Financial Freedom, Select Portfolio Services,
Wells Fargo/Wachovia, and the now former owners of Balboa Insurance
themselves…Bank of America) then outsources the tracking of your loan
with them to a company like Balboa Insurance.
Balboa makes some money by charging these companies to track your
insurance (the payment of which is factored into your loan). If you do
not meet the minimum insurance requirements set by your lienholder,
Balboa Insurance places a force placed insurance policy on your loan.
You are sent a letter telling you that you do not have insurance, and
your escrow account is then adjusted for the inflated premium of a full
coverage policy placed by Balboa’s insurance tracking group, run by
Steven Ramsthel, Sr Vice President of Loan Tracking Operations &
Customer Care at Balboa Insurance Group, as seen on his LinkedIn
How is Balboa able to charge such inflated premiums and get away with it?
It’s all very simple.
First, when you call in to customer service, for say, GMAC, you’re
not actually speaking to a GMAC employee. You’re actually speaking to a
Bank of America associate working for Balboa Insurance who is required
by their business to business contract with GMAC to state that they
are, in fact, an employee of GMAC. The reasoning is that if you do not
realize you’re speaking to a Bank of America/Balboa Insurance
employee, you have no reason to question the validity of the
information you are receiving from them. If you call your insurance
agent and ask them for the lienholder information for your GMAC/Wells
Fargo/etc lien (home or auto) you will be provided with their name,
but the mailing address will be a PO Box at one of Balboa’s 3 main
tracking locations (Moon Township/Coreaopolis, PA, Dallas/Ft Worth,
TX, or Phoenix/Chandler, AZ)
Tells me Boa is knowingly hiding Foreclosure information from Feds…
Zero Hedge is still going through all the supporting documents, which can be read in their entirety at the following link.