At one minute past midnight on Monday morning, a hacker collective released a set of emails on the website BankofAmericaSuck.
While all the allegations in the leaked documents involve Bank of America (BAC) -- through a soon to be ex-subsidiary called Balboa Insurance -- they also implicate many other big banks that are clients of Balboa, including: "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 [BofA]."
Force-Placed Insurance Scams
The leaker's information relates primarily to "force-placed insurance" -- insurance taken out by a mortgage servicer on a home when the homeowner doesn't maintain the level of insurance required by the loan -- and the role of Balboa Insurance in that industry.
Force-placed insurance is such a problem that the proposed bank settlement on improper foreclosure and loan-servicing practices currently in the work contains many "shall nots" regarding it, including such things as: Thou shalt not buy force-placed insurance, charging a borrower and taking borrower's money from escrow to pay for it, when borrower already has an insurance policy in place.
See full article from DailyFinance: http://srph.it/hWErV6
See full article from DailyFinance: http://srph.it/hWErV6
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