http://seekingalpha.com/article/258082-bank-of-america-leak-exposes-alleged-force-placed-insurance-fraud (http://seekingalpha.com/article/258082-bank-of-america-leak-exposes-alleged-force-placed-insurance-fraud)
QuoteSo, what do the latest leaked emails reveal? The most obvious thing is that Balboa/BofA employees were allegedly engaged in trying to hide original loan documents by erasing Document Tracking Numbers from scanned documents.
But the Balboa employee also appears to have information that would blow the lid off a number of alleged Force-Placed Insurance scams that are highly questionable, probably illegal and most likely would expose companies like Bank of America to more suits by mortgage-backed securities investors.
Moreover, there are many instances in which the force-placed insurance companies (like Balboa) have actually back-dated the insurance by up to nine months and then charged the homeowner for insurance they didn't actually have and for which no claims will ever be filed because the covered period is in the past. These sorts of practices may explain the unexplained charges that show up on mortgages for people who have missed a payment or two, but then are unable to understand why their outstanding balance is more than their original mortgage. (There may be other explanations, but the force-placed insurance scam seems a likely candidate.)
:horrormirth:
:lulz:
I cannot wait for Monday, it'll be like christmas. :lulz: