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OpEdNews Op Eds    H3'ed 3/14/11

Anonymous Uncovers Details on Bank of America Fraud, Establishes Way for Employees to Get Story Out

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These are "document tracking numbers," a number assigned to all incoming/outgoing documents (letters, insurance documents, etc).

A woman with Balboa Insurance replies:

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I have spoken with my developer and she stated that we cannot remove the DTNís from Rembrandt, but she can remove the loan numbers, so the documents will not show as matched to those loans.

I will need upper management approval from Jason, Peggy and Kirsten, since this is an usual request, before we move forward.

Rembrandt is the insurance tracking system.

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Peggy with upper management replies, "Where will these letters show up then?" The woman from Balboa responds, "The letters will not show in Rembrandt if you search by loan number. If you search by DTN, you will find the document, but it will not be matched to any loan."

The numbers' removal are then "approved."

The operations manager expresses his concern:

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? We have told Denise Cahen, and 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: example: a scanned document that was mailed to us asking why the letter was received when the letter, albeit erroneous ñ this being the letters that went out in error ñ the auditor sees the erroneous letter but no SOR [System of Record] trail or scanned doc on the corrected letter is in the SOR and scanned in). What am I missing? This just doesnít seem right to me.

What Goes on When Working

The employee describes Balboa Insurance Group as a business that profits off of "insurance tracking and Forced Placed Insurance (aka Lender Placed Insurance, FOH, LPI, etc)."

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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.

One email in particular details fraud and alleges Balboa Insurance/Countrywide knowingly hid 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). The email says loan documentation was falsified "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, purposely and knowingly adjusting premiums for REO (Real Estate Owned) insurance for their corporate clients while denying forbearance for individual borrowers."

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Kevin Gosztola is managing editor of Shadowproof Press. He also produces and co-hosts the weekly podcast, "Unauthorized Disclosure." He was an editor for OpEdNews.com
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