Bank of America debt collector servicer along with their Akerman Senterfit fraudclosure mill were caught red handed in a fraudclosure case. Their usual fraudclosure cover up tactics seem to have hit a bit of a snag.
We are going to be doing some in depth research into the Countrywide Trust, CWALT 2006-OC8. We aren’t the only ones! FHFA listed this trust in one of their September 2011 eighteen filed lawsuits against financial industry shysters for mortgage origination fraud, appraisal fraud, and underwriting fraud. The FHFA v Countrywide Financial lawsuit is here.
Today’s fraud gives us a glimpse into the accounting fraud that allows the trusts to illegally and fraudulently use tricks to prop up the quickly fading values of the trusts. The investors are the ones being tricked and fooled with this variant of Wall Street fraud.
A few reasons for keeping the trust balance inflated are:
- Securitization Parties’ Profiteering – Servicer fees and Master Servicer are based on a percentage of the mortgage balance. The longer a servicer can keep the home in limbo, the more fees can be extracted from the trust.
- Lower tranches (often held by the debt collector illegal servicers) are eroded as the trust takes losses. Keep the losses hidden and the lower tranches live to reap false profits another day.
- Payola for parasitic twin trusts, called NIMS, are based on various performance criteria of the underlying trusts.
- Trust Principal Balance includes modified, foreclosure, delinquent, bankruptcy, and REO balances and accruing interest. Once a mortgage is paid off, or a home that went back to the trust in a fraudclosure action is sold to a new buyer – that’s when the trust accounts for the realized loss.
Mr. Pino has a satisfaction of mortgage dated July 8, 2011.
Well, let’s take a look see at how BoNYM, the trustee, is reporting this loan to the trusts’ investors. Of course, it should not be on the books at full value PLUS accruing late fees and perhaps even bogus property inspection fees and/or default servicing fees or any other brand of impermissible predatory mortgage servicing fees.
As of the end of Oct 2011, the Pino loan is still listed as in foreclosure status, doing it’s job of inflating the balance of the trust, oh you know…. to keep up appearances and all.
The trust accounting even shows monthly losses for the unpaid interest at $439.66/month.
Nothing like accruing unpaid interest in October on loan that was satisfied in July, right? Accounting fraud anyone?
As per the financial services modus operandi, we fully expect this “industry standard”, “irregularity”, “impropriety”, and/or “error” to be fixed soon after publishing this post.
Pino Satisfaction
1 comment:
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