Bank of America’s CON GAME

[Segami]

:smoke: :smoke:

And still NO CRIMINAL CHARGES.



" The first round of Wikileaks email dumps from Bank of America support accusations that BofA deliberately mismanaged mortgages it was servicing in order to generate higher fees and cheat mortgage owners. Here’s how it works:


First, say you bought a house through Bank of America. Bank of America sold the loan to the secondary market, where it was bundled into a mortgage investment and sold to investors, but BofA continues to service the loan. As a person with a mortgage, you are required to have homeowners insurance in case your home is damaged. You pay the premium a little each month as an add-on to your house payment. As the mortgage servicer, Bank of America sets aside the homeowners insurance premium and pays the insurance company when the premium comes due.


These emails document BofA deliberately not paying the premium, (leading, of course, to cancellation) and buying alternate insurance from its own subsidiary, Balboa Insurance.


How? If you don’t have your own homeowners’ insurance, the mortgage contract allows your lender to buy insurance to cover its own interest in the home (and not yours). This is called force placed insurance. Since the loan is owned by investors, the servicer actually buys the insurance, and the premium is charged to either the investor/owner or you. Balboa Insurance contracts with a long list of mortgage servicers to monitor accounts for insurance payments and to buy alternate insurance if premiums lapse.


Why?


1. Balboa Insurance is in the business of selling this kind of insurance. It has a vested interest in getting rid of your insurance and substituting its own.


2. This kind of insurance is much more expensive than standard homeowners insurance, and there is often a commission-splitting arrangement (aka kickback) with servicing banks like BofA. What kind of cost difference are we talking? Think $4,000 vs. $33,000 with a kickback of $7,100.


cont'

http://www.politicususa.com/en/bank-of-america-con-game


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[Newest Reality]

1. Oh ho!

But it is ALL a con game. It is all a ponzi scheme. The only difference is in finding out that it is so.

Sad fact. True fact. Hint: Don't go falling down because you know. There are other things to do besides randomly blowing people away with a shotgun because you finally got it.

[Iwasthere]

2. WOW!

We have a BA loan (originally Countrywide). And we have PMI insurance that was required by BA. Now we are having trouble refinancing with the new refi plan because they said because we have pmi we cannot get the 4% they would offer us, and we are not allowed to pay off the pmi they said?

[bluesbassman]

4. PMI is on your loan because the original Loan To Value ratio was greater than 80%.

All mortgages that are written to Fannie Mae guidelines are subject to PMI if the LTV is greater than 80%. If your LTV is less than 80% now, you should be able to have the PMI removed. This generally requires a full appraisal (paid by you) to validate the current value. If the bank is telling you you can't re-fi it's because they probably did a Automated Valuation appraisal and determined your LTV is greater than 80%.

Most major lenders will not refi a loan for greater than 80% LTV. If your current rate is really high on a 30yr fixed, or you have an Adjustable Rate Mortgage that's due to adjust, your options would be to pay down your principle to less than 80%, or speak with a Mortgage Broker who may be able to place your refi with a smaller lender, or you could refi into an FHA loan. The upfront costs on the FHA are a little higher than a conventional loan, but the rates are pretty low right now.

[notesdev]

3. Need to classify them

BoA con game #1, BoA con game #2, etc. etc.

If you think it's just one with these people, you're still too innocent and trusting. Their whole business model is ripping people off in various ways. Just ask anyone who has had an account with them!

And of course they now own CountryWide, which is legendary in and of itself for various felonies, including open bribery of Senators and Representatives.

[mahina]

5. How's this....

BoA holds my mortgage, and I got a note saying I needed to buy some kind of insurance and a bucket of it or they were adding 4k + to my mortgage. I got a copy of the certificate of insurance and faxed it to them but they still kept like 400 bucks.

Mofos. Should call it BofmofosA.

[formercia]

6. The best part of all:

BoA owns Balboa Insurance.

[Segami]

7. Is that not a ' conflict of interest ' for BoA?

:shrug:

[formercia]

8. Not according to BoA

Just good business.