Interesting... Here is the latest from OperationLeakS website. The article was written by ExBofAEmployee1.
Remember, the whistleblower and ex BofA employee had claimed that Balboa "knowingly hid foreclosure information from federal auditors during the takeovers of IndyMac Federal (which is now owned of OneWest) and Aurora Loan Services (a subsidiary of Lehman Bros Holdings), falsifying loan documents. This is not surprising new information but the whistleblower gives the latest FAQ. The info that the whistleblower reveals, the more nails into BofA coffin and more probes and lawsuits.
Here is an excerpt:
Each contract contains quite a bit of information, but you want to look specifically for the information regarding the Service Level Agreement (SLA), Return to Lender (RTL), and Unable to Locate (UTL) documents. What you are looking for specifically is: a) How long the insurance tracker is required to keep a non-insurance related document, and b) How the insurance tracker is required to process a non-insurance related document.
Why is this important?
One loophole often exploited by the mortgage servicer to “lose” documentation is hidden in this system. There are 2 ways to prove this:
1-Mass Scale
When IndyMac and Aurora were taken over by the Feds/filed bankrupcty, what they did to exploit this loophole was simply box up all of the files they didn’t want anybody to see and sent them to Balboa. Balboa took care of them, because: a) The document remained in possession of the insurance tracker for 90 days according to the SLA cited in the contract, and b) Any documents that had the lienholder’s (or an acceptable subsidiary’s) name on it was returned to them after the 90 day period according to the RTL guidelines in the contract, while any documentation where the lienholder information was missing (scratched out, torn off, etc) was shredded per the UTL guidelines in the contract.
In order to prove this scenario, you will also need to subpoena and review (in addition to the lender contract) the full range of volume tracking documents for the date ranges the Feds would’ve been checking records (these are stored on shared tracking drives located in Simi Valley, CA, Plano, TX, and Chandler, AZ), as well as a few weeks before and after. The volumes are recorded at each step of the mailroom process via MS Excel spreadsheets and MS Access databases (review Microsoft’s EULA for information on how to obtain this information). The volumes are tracked throughout several internal share drives, SQL databases, Sharepoint sites, and even on paper documents stored in filing cabinets by Rhonda Meyers and several other AVP’s throughout Balboa. If you were to subpoena and review these specific documents (whether obtained through BAC, Balboa, or Microsoft) for the date ranges surrounding any date federal regulators were physically auditing Aurora Loan Services and IndyMac Bank, you will notice the following irregularity:
On a high volume tracking level, you will see an influx of physical documents received by the Balboa mailroom within 3-5 business days of any timeframe in which the Feds were investigating actual documents at Aurora & IndyMac. You will also notice that the influx of incoming physical documents during your target date range inconsistently affects the relative amount of RTL & UTL documents when compared to the ratios outside the target range or when compared to EDI (Electronic Document Images) or Faxed documents, as all of these incoming document sources are tracked separately for purposes of the contractual SLA.
If you wanted to further prove the point, you can also subpoena the signed delivery records kept by both FedEx/DHL/US Postal Service and the Balboa mailroom (again, run by Rhonda Meyers and tracked via MS Excel spreadsheet in various share drives) in order to see where these large volumes came from. You can find the information in the loan servicers’ expense reports as well, because large boxes haphazardly filled with documents are surprisingly heavy and cost quite a bit to ship. Accounting records for Aurora, IndyMac, and Balboa will show this scenario happened and it is indeed traceable.
As an added side affect of an assembly line production environment, you can even subpoena the Balboa employee timesheets (which, like all other records mentioned, are tracked indefinitely) and production logs for the same timeframe in order to identify which associates were working in the mailroom at that time, locate overtime inconsistencies, etc. Why would you do that? Anomalies don’t just show up in the system. They stick out in a human being’s memory as well. In an assembly line production environment you’re used to consistency. The same thing happens all the time with very few exceptions. No matter how many years go by, you will always remember the timeframes when something out of the ordinary occurred, such as:
The times you had to cancel your evening plans to work late because of higher than normal volumes
The times you had to sort through a bunch of unorganized boxes and nobody bothered to tell you why when you asked
The times you had to keep going through a bunch of embossed manila certificates and 15-20 page documents that had nothing to do with your job in insurance
You will not be able to document exactly who these documents belonged to utilizing this method, but you will be able to prove the high volumes of documents and type of documents quite easily. Keep in mind that one thing a mailroom associate specializes in is learning and recognizing document types at a very quick pace so their expert testimony in such a case would prove invaluable despite the executives at these companies believing otherwise.
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