Many of the nations largest insurance companies are joining forces in order to sue Bank of America for "mortgage fraud." These are the insurance companies: Dexia Holdings, FSA Asset Management, New York Life Insurance Company, The Mainstay Funds, Teachers Insurance & Annuity, TIAA-CREF Life Insurance, and College Retirement Equities Fund. MBIA, a holding company who provides financial guarantee insurance, found that in approximately 19,000 Countrywide loan files, at least 91% of the loans are either in default or delinquent, and appear to contain material deviations from Countrywide's underwriting policies.
The issues for Bank of America stem from loans originated by Countrywide which Bank of America purchased in 2008. Many of the Countrywide loan applications for the non-performing loans were replete with omissions. Repeatedly, mortgage origination files did not have verifications showing borrower income, had invalid appraisals, and failed to show what the debt-to-income ratio or the borrowers credit score was.
In the coming months, it is likely that Bank of America will be battling billions of dollars in damages the insurance companies are seeking. If you are facing a Florida Foreclosure Lawsuit where Bank of America is the Plaintiff, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Lawyer today to determine what defenses may be available to you in order to save your home.
