As promised, activist collective Anonymous (aka OperationLeaks on Twitter) released documents and emails today that are said to reveal “corruption and fraud” at America’s largest U.S. bank, Bank of America (NYSE:BAC).
The supposed proof was posted here: bankofamericasuck.com, but the site seems very unstable, with links leading to blank pages and much of the information posted to have been removed. As we pointed out in our original post, no one with true knowledge on the matter has stepped forward to guarantee these emails and documents are in anyway accurate.
The activist collective Anonymous is saying these emails are only part 1 in a series of releases. The information leaked is from a former employee from Balboa Insurance, a firm which used to be owned by Bank of America and not a employee of the bank as previously reported.
Between the initial threat and today’s release, a Bank of America spokesman released a statement that said these documents were stolen and shot submitted by a former Balboa Insurance employee.
The documents are said to deal with Bank of America’s mortgage practices.
In reviewing the emails, we found that most of the conversation is between Balboa Insurance and Bank of America employees. The source who provided the information to Anonymous, told them that these emails reveal Bank of America’s order to mismatch loan numbers from their documents in order to foreclose on homeowners.
Though, after review it is hard verify there is anything Bank of America should be worried about, the timing of this news comes at a time when most of the nations big banks are finally resolving errors from the foreclosure crisis that occurred throughout Q4 of 2010.
MyBankTracker.com will continue to report any new information that becomes available.
UPDATE: A representative from Bank of America couldn’t immediately be reached for comment early afternoon on Monday.
You can also read an email from the anonymous employee from Google’s cache of the released emails below.
My name is (Anonymous). For the last 7 years, I worked in the Insurance/Mortgage industry for a company called Balboa Insurance. Many of you do not know who Balboa Insurance Group (soon to be rebranded as QBE First by Australian Reinsurance Company QBE according to internal communication sent to all Balboa associates) is, but if you’ve ever had a loan for an automobile, farm equipment, mobile home, or residential or commercial property, we knew you. In fact, we probably charged you money…a lot of money…for insurance you didn’t even need.Balboa Insurance Group, and it’s largest competitor, the market leader Assurant, is in the business of insurance tracking and Force Placed Insurance (aka Lender Placed Insurance, FOH, LPI, etc). What this means is that when you sign your name on the dotted line for your loan, the lienholder has certain insurance requirements that must be met for the life of the lien. Your lender (including, amongst others, 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 the now former owners of Balboa Insurance themselves…Bank of America) then outsources the tracking of your loan with them to a company like Balboa Insurance.
Balboa makes some money by charging these companies to track your insurance (the payment of which is factored into your loan). If you do not meet the minimum insurance requirements set by your lienholder, Balboa Insurance places a force placed insurance policy on your loan. You are sent a letter telling you that you do not have insurance, and your escrow account is then adjusted for the inflated premium of a full coverage policy placed by Balboa’s insurance tracking group.
UPDATE 2: Bank of America spokeswoman Jumana Bauwens had this to say to MyBankTracker.com on the bank’s behalf: