EMAILS SHOW BofA’s Force-Placed Insurance Unit Hid Foreclosure Information

BofA’s Force-Placed Insurance Unit Hid Foreclosure Information, Say E-Mails Released By Hacker Group

The New York Times reports:

  • A hacker organization known as Anonymous released a series of e-mails on Monday provided by a former Bank of America employee who claims they show how a division of the bank sought to hide information on foreclosures.
  • The bank unit, Balboa Insurance, was acquired by Bank of America when it bought the mortgage lender Countrywide Financial in 2008. Balboa deals in so-called force-placed insurance coverage on mortgages. The e-mail messages concern the removal of information linking loans to other documentation.


  • The e-mails dating from November 2010 concern correspondence among Balboa employees in which they discuss taking steps to alter the record about certain documents “that went out in error.” The documents were related to loans by GMAC, a Bank of America client, according to the e-mails.


  • A member of Anonymous told DealBook on Monday that the purpose of his Web site was to bring attention to the wrongdoing of banks. “The way the system is, it’s made to cheat the average person,” he said.

For more, see Bank of America Unit Tried to Hide Foreclosure Information, Hackers Say.

Go here for the Balboa e-mails.

See also Hacker Collective Anonymous To Release Documents Proving Bank Of America Committed Fraud This Monday.

Thanks to Mike Dillon(1) at for the heads-up on the story.

(1) According to Dillon, he attempted to bring the loan servicer racket revolving around force-placed insurance and kickbacks to the attention of 45+ Senators and Congresspeople almost two years ago through a GAO Review request of the FTC in connection with the USA v. Fairbanks litigation. No one was interested. Exhibit T, Exhibit U, and Exhibit V may be of interest. They will show that HUD-OIG and, therefore, the FTC, US AG, etc knew about force placed insurance, alleged kickbacks, etc. at least as far back as 2003. And have apparently done nothing about it.

posted by Home Equity Theft Reporter

9 Responses

  1. MSoliman,owner of Nationwide Loan Services received a BBB Rating in Los Angelas Ca. 90014 of F. BBB Comments & Analysis They strongly question the company’s reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, their complaints contain especially serious allegations,or the company’s industry is known for its fraudulent business practices.

  2. I pointed out Balboa over a year ago to our attorney and the FBI. They thought I was crazy.

    Our PSA states that Kushal Bhakta is lead counsel & Vice President of Countrywide Home Loans, CWALT INC, Park Grenada, Park Monaco, Park Siena, Countrywide Home Loans Servicing, and ALL are part of our Trust.

    This clearly violates the REMIC Provision which strangely is stated in the PSA. Yet, none of the legal entities I’ve spoken with or sent emails seem to care.

    Those Trust entities cannot be cross-pollinated – per conflict of interest… Balboa is the one of the largest mortgage insurance companies in India. Kushal Bhakta is a SENIOR PARTNER – imagine that…?

    I bet ole-Kushal has BILLIOINS in his account in India and that isn’t said to denigrate folks from India at-all – simply that if our freaking GOV is that DUMB and then REFUSES to investigate – offer me a BILLION DOLLARS in an account the FED cannot touch… Then we’ll see what happens…

    This is SICK – it bespeaks of a cronic TERMINAL ILLNESS and the patient (our Gov) refuses medication…

    How long will the masters continue demanding more bricks from the slaves without straw – water – or clay…?

    How long will the slaves tolerate the audacious arrogance and deliberate self-imposed ignorance?

    Millions of American families destroyed, abused, relentlessly pursued and repeatedly raped & pillaged, then tossed to the street with permanent MARKS from the BEAST to hold them as SLAVES and continued abusiveness and humiliation…? HOW LONG?

    What is the difference between the Terrorist professing to attack us 10,000 miles away and the Terrorist Insurgent wearing a suit slithering into our courtrooms and attacking us & our brethren EVERYDAY… hacking away – chewing, stomping, slicing, manipulating, lying, stealing, and ALWAYS abusing our citizens…?


    The Soviets destroyed Afghanistan then pulled out. For the next 30yrs those families were left in DIRT-FLOOR TENTS – no shelter – no food – no water – no bathrooms – no NOTHING – left & forgotten.

    How long before Americans realize the Gov has decided to sacrifice these families to protect their retirement funds? Our states foreclose on families for failing to pay a 800-dollar utility bill – failing to pay property taxes – yet they turn a blind-eye to these lying thieving lenders when they commit atrocious illegal acts against our countrymen/women/children then GLEEFULLY leave them in utter-dispare?

    Is this not what our forefathers fought against a few hundred years ago?

    “…That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness…
    …But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security. –Such has been the patient sufferance of these colonies; and such is now the necessity which constrains them to alter their former systems of government…” Declaration of Independence

    “…Let us not deceive ourselves, sir. These are the implements of war and subjugation; the last arguments to which kings resort. I ask gentlemen, sir, what means this martial array, if its purpose be not to force us to submission? …They are meant for us: they can be meant for no other. They are sent over to bind and rivet upon us those chains which the British ministry have been so long forging.
    And what have we to oppose to them? Shall we try argument? Sir, we have been trying that for the last ten years. Have we anything new to offer upon the subject? Nothing. We have held the subject up in every light of which it is capable; but it has been all in vain. Shall we resort to entreaty and humble supplication? What terms shall we find which have not been already exhausted? Let us not, I beseech you, sir, deceive ourselves. Sir, we have done everything that could be done to avert the storm which is now coming on. We have petitioned; we have remonstrated; we have supplicated; we have prostrated ourselves before the throne, and have implored its interposition to arrest the tyrannical hands of the ministry and Parliament. …If we wish to be free — if we mean to preserve inviolate those inestimable privileges for which we have been so long contending — if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained — we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of hosts is all that is left us! …It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace — but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!

    …Patrick Henry – March 23, 1775

    How long before liberty is sold & freedom is only the privilege of slave masters..???

    Just some thoughts…

  3. We knew the insurance companies were in on it, too. Now, we see how it works. This should not surprise anybody. Hugh multi-national corporations are only out for power and money. Regulations need to be put in place to keep the giant corporations under control. When hell freezes over.

  4. […] this is bad timing for the megabanks. With BOA exposed as a knowing and willing perpetrator of a widespread scam on homeowners with force-placed insurance, (which by the way means the amount they demanded as […]

  5. GEEZ and I thought that BOA’s right hand did not know what the left hand was doing? NOT.

  6. There is something more to this. A copy of our Note and Deed of Trust that were provided to the Chapter 13 Trustee by Wells Fargo attorney Pite Duncan in San Diego also had the original loan numbers removed. But why? Perhaps because they have sold the mortgage to several different trusts?

    Here’s the REAL kicker. When I called Wells back in 2009 to see about a loan mod, I asked if it was owned by Fannie Mae or Freddie Mac….her reply, “It says , Maybe'” What the….?

  7. So this may one of reasons why homeowners were falsely placed in default — before they refinanced. Meaning prior trust never paid off.

    Forced placed insurance (hazard insurance) is not done only when loan falls into default. FPI is done even when you are not in default — and when you have provided insurance coverage. Once done — mortgage payments are wrongly allocated by servicers. No turning back.

    This a big story.

  8. instead of following up on the borrower’s individual home owner policy when it does not arrive in time as required, the banks must order coverage to protect the investment itself. In fact, if they do not, the servicer may be subject to a suit if the house burns down and no coverage was on the property.

    I do not believe that policy has changed as it certainly makes sense. The problem however is that the servicer had the name of the current agent of record and simply needed to pay them rather than using their own insurance company. For this is where are the business was sent and most assuredly the lender would have received something for their referral.

    The homeowner had the responsibility to get his own policy in and a lot of people do not follow up, the servicer uses that to their advantage.

    They have been doing this since the cows came home since l996 I am sure and this has even been challenged before 2003. Not sure how they got back into the business of doing it again. But most borrowers in foreclosure simply do not followup on their insurance responsibilities.

    These charges for insurance were outrageous the servicer says the insurance company issues coverage without making an inspection like most other insurance companies do.

    Everything the mortgage industry touched is tainted.

  9. This is a compelling story – but not sure what is does for a borrower. Is this hazard insurance ? …the lender always will move to force place the insurance once a loan falls into default…..Always ….Hmmmm I don’t see the drama evolving here…

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