Is Bank of America Hiding Foreclosure Information?

Posted On: March 24, 2011

Currently in news e-mails were released that were allegedly provided by a former employee of Balboa for Bank of America, claiming to have records showing to what extent a division of the bank sought to conceal information about foreclosures. These new findings may iniciate a mortgage fraud investigation by the authorities.

The former Balboa employee, revealed the emails from the company who deals in force-placed insurance coverage on mortgages, working closely with Countrywide Financial and as such, Bank of America, who bought Countrywide a few years ago.

A Bank of America spokesman reported to Reuters that the documents had been stolen by the former Balboa employee, and were not tied to foreclosures. “We are confident that his extravagant assertions are untrue,” the spokesman said.

The e-mails between employees at Balboa depicted a few concerns that raised eyebrows and questions:

“The following GMAC DTN’s need to have the images removed from Tracksource/Rembrandt,” wrote an operations team manager at Balboa. DTN refers to document tracking number, and Tracksource/Rembrandt is an insurance tracking system. The response he received was: “I have spoken to my developer and she stated that we cannot remove the DTNs from Rembrandt, but she can remove the loan numbers, so the documents will not show as matched to those loans.”According to the e-mails, approval was agreed to remove the loan numbers from the documents.

This is a very serious allegation being that many people in Miami, Fort Lauderdale and Palm Beach are getting mailings regarding the obligation to pay a force-placed insurance applied in error or for some reason unexplained when they have paid an insurance bill separate from the mortgage for years. Many people have contacted mortgage fraud attorneys because of the recently released information from mortgage companies, in the past few months an increasing number of people being foreclosed upon have encountered a force-placed insurance applied to their loans. It is possible the general public is being taken advantage of in some way according to some of the comments about the information.