Zero Hedge has an early report from the documents being published:
this appears to be a concerted effort from the ground up to hide foreclosure data from auditors and the Fed in order to obtain select preferential treatment in a variety of housing related axes, in many instances to accelerate foreclosures. As the whistleblower summarizes: "Balboa Insurance/Countrywide knowingly hiding 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), falsifying loan documentation 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, purposefully and knowingly adjusting premiums for REO insurance for their corporate clients while denying forebearances for individual borrowers, etc, etc, etc.
My snarky view of this is these are probably the same documents the US Federal Reserve Bank Cartel took a look at and reported last week (while refusing to release the report) that there was NO FRAUD.
Zero Hedge will be adding to their reporting as they digest the releases. The link:
The Zero Hedge linked:
There is a good Q&A on this link, but I can't cut and past any of it. Worth reading it.
This first data dump wave seems a bit disjointed to me and I'm having trouble opening sites at this time - probably a million citizens of the Internets trying to open the docs all at once.
If you've not seen it bobswren has a much more detailed look at the alleged fraud through the pen of Yves of Naked Capitalism.
A Yves comment:
Regardless, this release lends credence a notion too obvious to borrowers yet the banks and its co-conspirators, meaning the regulators, have long denied, that mortgage servicing and foreclosures are rife with abuses and criminality.
Another blogger that's got a look at it is market-ticker
The charge is basically that Bank of America's wholly-owned subsidiary Balboa Insurance with the cooperation of servicers abused "force-placed" insurance provisions to effectively "cram" customer accounts. Note that Balboa is apparently subject to a sale agreement (it is being spun off) but there is no information available as to whether that sale has closed.
The bottom line of the charge leveled here is an attempt to pad (radically) servicer income at the expense of the homeowners. This could have easily caused some foreclosures. If it did, then the investors got screwed out of the money, as the servicer is paid first on a foreclosure from the proceeds.
market-ticker is a pretty right-wing, libertarian site that always has nasty things to say about a Obama, but he's for throwing the banksters in jail. His views on bankster fraud have been spot-on.
A link to his first cut analysis: