FREE EBOOK: Whistleblowers Reveal How Bank of America Defrauded Homeownersand and Paid for a Cover Up – All With the Help of “Regulators”


“We are making this eBook available for free to make sure it is distributed as widely as possible. Please share it with friends, particularly anyone you know who sent in an IFR letter.”


Naked Capitalism: Launching Our First (Free) Ebook on the OCC/Fed Foreclosure Review Fiasco

As a result of many reader requests, we’ve turned our series based on testimony from whistleblowers at Bank of America and PNC on the whitewash more formally known as the Independent Foreclosure Reviews into an eBook, which we are releasing today. This was the very same OCC mandated process, billed as a way to provide wronged mortgage borrowers with the opportunity to get a measure of justice, that instead turned into a costly and embarrassing fiasco. But it still worked out well for the banks. The amount they paid, even with a mind-boggling $2 billion of fees to consultants and another $3.6 billion in cash payments to borrowers, is far less than they would have shelled out if the process had been designed to conduct the investigations fairly and give meaningful awards.

We hope you will download this eBook, read it, and circulate it widely. It’s timely because the botched foreclosure reviews are coming back into focus. The GAO released its report on them yesterday, and even though it was narrow in focus, it confirmed, as Dave Dayen reported, that the IFR was poorly designed, inconsistently implemented, and subjected to changing guidelines. Elizabeth Warren and Elijah Cummings will be meeting with the OCC and the Fed on Tuesday April 9 to grill them on their sorry performance in the IFR. On Thursday the 11th, Sherrod Brown will be holding hearings in the financial institutions and consumer protection subcommittee. Maxine Waters has also said she will be introducing legislation next week to curb regulators’ use of third party consultants.

We are distributing copies to Elizabeth Warren and Elijah Cummings and to Sherrod Brown and the members of his subcommittee.

Copy of the eBook below…

Please download, read, and share!

PS The download is MUCH MUCH better looking than ScribD make it appear. It also makes the native font size look smaller than it really is. This rendering does not do it justice. So download away to get a proper viewing experience and enjoy!



Naked Capitalism Whistleblower Report on Bank of America Foreclosure Reviews


8 Responses to “FREE EBOOK: Whistleblowers Reveal How Bank of America Defrauded Homeownersand and Paid for a Cover Up – All With the Help of “Regulators””
  1. withament says:


    Trillions and Trillions of Reasons Part 2 …

    Part 2 of Episode 2 ….. The Subprime of it ….

    Look Forward to Future Episodes from The Bat Cave

  2. No one was paid off because there is no real money just one big Monopoly Game where all the People are used to supply a life for the banklords and the banklords do whatever they want to the balance. How do the banklords do it? The System that JFK talked about was create so that they provide a higher class of people that they help make them billionaire while paying all the poor just enough to keep them happy which ends up being the majority of the rich and poor because only the banklords count the vote.

    /S/ Steven Pattison contact at StevenPattison at everestkc dot net

    • Sorry, the majority is the Rich, the Poor and all the People that work for the System which is the cities; the local Municipal Corporations like the fired departments and golf courses; the county; the States as defined as DC and the territories; the States defined as the Union States but are really territorial too; and then the Federal Government which really is a National Government.

      All Unalienable Rights our mine and mine alone for they can never be sold or given away,
      /S/ Steven Pattison

  3. Robert Tatge says:

    February 1, 2013, the same representative from Fifth Third Bank that covered up the Forced Placed Insurance sent me a letter? Enclosed Please follow-up. Thank you! Robert

    Have I been left out of any recourse with Fifth Third Bank? I believe they committed FRAUD to no end… Maybe Country-wide, now Bank of America, started my wrongful foreclosure with the PMI they’re charging me and paid Fifth Third Bank to take over questionable loans…. WITHOUT PREJUDICE… My findings below…
    EXHIBIT “1”, Countrywide monthly loan statement- 4 pages.

    ADDENDUM written to report findings by association of FRAUD and KICKBACKS
    Alleged by Fifth Third Bank Mortgage and Country-wide home loans.
    1. THIS ADDENDUM hereby supplements the attached Publication concerning the following
    Article: Fifth Third Bank sued over alleged kickbacks of mortgage insurance
    April 7, 2012 12:00 am….
    By Rich Lord / Pittsburgh Post Gazette (manuscript title) Key Quote:
    “Unknown to the borrowers, Fifth Third had arrangements with the insurers under which they bought “reinsurance” from a subsidiary of the bank called Fifth Third RE, according to the complaint. The reinsurance, it said, was written in a way that the bank assumed little or no risk.
    The insurers “had no choice but to enter into virtually identical reinsurance contracts with Fifth Third RE or risk losing business,” the complaint said.”
    A Cincinnati-based bank is accused in a lawsuit filed Thursday of taking “disguised, unlawful referral fees” or “kickbacks” from mortgage insurers.

    The lawsuit against Fifth Third Bank, several related companies and six mortgage insurers by three borrowers seeks to become a nationwide class action. It appears to be one of several similar suits against banks following a 2009 ruling by the 3rd U.S. Circuit Court of Appeals, in a case by some of the same attorneys who are now suing Fifth Third, that opened the door for such litigation.

    The plaintiffs, Christopher Manners of Latrobe and Jamie and Aimee Young of Carbon Cliff, Ill., got mortgages from Fifth Third in 2007, according to the complaint in U.S. District Court.

    When homebuyers are unable to make down payments of 20 percent of the home’s purchase price, banks typically require private mortgage insurance on the loan. The bank picks the insurer and arranges for the coverage, against which it makes a claim if the borrower defaults. The borrower pays the premium as part of their mortgage payment.

    Fifth Third arranged insurance for Mr. Manners at a cost of $166.80 per month, and for the Young’s for $33.35 per month, according to the complaint.

    Unknown to the borrowers, Fifth Third had arrangements with the insurers under which they bought “reinsurance” from a subsidiary of the bank called Fifth Third RE, according to the complaint. The reinsurance, it said, was written in a way that the bank assumed little or no risk.

    The insurers “had no choice but to enter into virtually identical reinsurance contracts with Fifth Third RE or risk losing business,” the complaint said.
    Fifth Third from 2004 through 2011 got $54 million in reinsurance premium payments from the insurers, and only paid out $4.9 million in claims, according to the complaint. It said that this amounted to “a sham” and a violation of the Real Estate Settlement Procedures Act. RESPA bars lenders from taking referral fees from other parties involved in the loan, the complaint said.

    Fifth Third spokeswoman Barbara Grimsley said the bank doesn’t comment on litigation.

    Pittsburgh attorney Stephen J. O’Brien and several other lawyers filed the complaint. They could not be reached for comment Friday.

    Some of those attorneys — though not Mr. O’Brien — represented plaintiffs in an Eastern Pennsylvania lawsuit against lender Countrywide Financial Corp. and its reinsurance subsidiary that was resolved last year.

    That lawsuit was initially dismissed when Countrywide argued that the contracts between its subsidiary and the private mortgage insurers didn’t result in any overcharges to consumers. But the 3rd Circuit found that RESPA could be violated even if there were no overcharges.

    That lawsuit was settled with the creation of a $34 million settlement fund to cover payments to Countrywide borrowers and the attorneys.
    Rich Lord: or 412-263-1542.
    First Published 2012-04-07 04:08:47

    2. Other parties, alleged Publications supplemented to this Addendum are:(corresponding author) Parties alleged guilt by Association:
    The several denials for modifications by Country-wide, than Fifth Third Bank approval and all the exaggerated documents like Appraisal, Credit, and later Forced Placed insurance, than covering it up as it was never on record. Now because of the OCC dispute. I received a Letter from the very person at FITH THIRD BANK that covered up the “Forced Placed Insurance, Fraud they did to me”. They need to give my home back to me with comp! Without prejudice!
    Robert Tatge Feb 6, 2013
    (Date) August 22, 2008 Hassan Nagi Indicted in $1.9 Million Michigan Mortgage Fraud Scheme A federal grand jury in Michigan has indicted four men–including a mortgage broker and an appraiser–for allegedly running a $1.9 million real estate/mortgage fraud scheme. Hassan Nagi, 30, of Dearborn Heights, Michigan; Ali Haidous, 24, of Dearborn; Safi Bzeih, 35, of Dearborn; and Hussein Aoun, 23, of Dearborn Heights reportedly conspired to secure fraudulent mortgages from Countrywide Bank, Washington Mutual, Fifth Third Bank, Indy Mac Federal Bank, Net Bank, and Sun Trust for more than 15 properties between April 2005 and April 2008.
    The indictment alleges that Hassan Nagi worked as a mortgage broker and was responsible for submitting false and fraudulent applications to obtain the mortgages. Ali Haidous was a real estate appraiser who provided fraudulent appraisals for the properties. Bzeih and Aoun recruited sellers and straw buyers for the properties.
    According to the indictment, after the Nagi and Haidous identified a willing seller of a property, Nagi secured financing for a straw buyer. False income and employment information was provided to the lender using fraudulent W-2 forms. In support of each loan, Nagi also submitted an inflated appraisal, created by Haidous.
    After the inflated mortgage was funded at closing, the seller received sufficient funds to pay off any existing mortgage as well as a bonus for participating in the real estate fraud scheme. The remainder of the proceeds from the inflated mortgage were shared between Hassan Nagi, Ali Haidous and one of the straw buyers.
    Nagi, Haidous, and Bzeih were expected to appear in federal court before Magistrate Judge Virginia Morgan yesterday afternoon, for their initial appearances and arraignment on the indictment. Hussein Aoun is a fugitive in Lebanon. The case is being prosecuted by Assistant U.S. Attorney Leonid Feller.
    Posted By: Ralph Roberts @ 9:07 pm | | Comments (0) | Trackback |
    Filed under: Countrywide, Fifth Third Bank, Indy Mac, Michigan, Mortgage Fraud, Net Bank, Real Estate Fraud, Sun Trust, Washington Mutual

    3. ASSOICATION GUILT: February 14, 2010
    Kurt Heintz Broker and Appraiser Sentenced for Multi-Million Dollar Mortgage Fraud Scheme Former Flint Area Real Estate Broker and Appraiser Sentenced for Multi-Million Dollar Mortgage Fraud Scheme
    Kurt Warren Heintz, age 39, of Grand Blanc, Michigan, formerly the owner of Great Lakes Broker Funding in Grand Blanc, Michigan, was sentenced on Wednesday, February 10, 2010, to 65 months in the custody of the Bureau of Prisons on one count of Financial Institution Fraud in violation of Section 1344 of Title 18 of the United States Code. Sentenced at the same time was James Fish, age 41, of Royal Oak, Michigan, formerly a licensed real estate broker in the State of Michigan, who was sentenced to serve 30 months in the custody of the Bureau of Prisons on one count of Financial Institution Fraud in violation of Section 1344 of Title 18 of the United States Code.
    The sentences were announced today by United States Attorney Barbara L. McQuade. Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Office. The sentences were imposed by the Honorable Sean F. Cox, United States District Judge sitting in Detroit.
    On February 6, 2009 and February 4, 2009, respectively, Mr. Heintz and Mr. Fish pleaded guilty to a one-count Information charging that they had devised and executed a scheme to defraud Indy Mac Bank though the use of a fraudulent mortgage loan application based on a false and inflated property appraisal. Although Mr. Heintz and Mr. Fish pleaded guilty to one count of Financial Institution Fraud, they agreed to be held responsible for the full extent of their scheme to defraud financial institutions in the Flint metropolitan area. This scheme to defraud began in May of 2005 and continued through 2007. In addition to Indy Mac Bank the victim financial institutions included, Fifth Third Bank, Bank of America, Independent Bank, Mercantile Bank, and Union Federal Bank. The Federal Bureau of Investigation conducted of a review of the mortgages obtained in the course of this scheme to defraud and calculated the loss to these and other lending institutions at more than $14.4 million.
    In sentencing Heintz and Fish, Judge Cox carefully reviewed and summarized the facts of the case, as well as the background and circumstances of each defendant. Judge Cox expressed his “shock” that Mr. Heintz had chosen to devise and commit such a serious and devastating crime. In sentencing Mr. Fish, Judge Cox said his sentenced had been heavily influenced by the fact that Fish had stolen the identity of other appraisers and used them on fraudulent appraisals. In addition to the millions of dollars lost by lending institutions, Judge Cox noted the devastation caused to entire neighborhoods, the financial cost to unsuspecting purchasers and the damaged and destroyed careers of innocent appraisers.
    In addition to their custodial sentences, Mr. Heintz was ordered to pay, jointly and severally with Mr. Fish, $14,467,546.50 in restitution to various financial institutions, and Mr. Fish was ordered to pay, jointly and severally with Mr. Heintz, $4,992,400. Each was ordered to pay a $100 special assessment and must serve three years of supervised release upon the completion of their custodial terms.
    FBI Special Agent in Charge Arena said that, “These charges and sentences underscore the seriousness with which the United States Attorney’s Office, the Federal Bureau of Investigation, area financial institutions, as well as other local, state and federal law enforcement agencies and regulators, view allegations of mortgage fraud. Mortgage fraud continues to have significant and devastating consequences for the Michigan economy. It is important that investors, consumers and real estate professionals, as well as the public in general, recognize that schemes to defraud involving mortgages and real estate transactions will result in the incarceration of the offenders.”
    Posted By: Ralph Roberts @ 9:22 pm | | Comments (0) | Trackback |
    Filed under: Uncategorized

    With respect,
    Robert L. Tatge

  4. Robo-signing and servicer abuse issues were also all a head fake to keep the defrauded homeowners and their attorneys from digging deeper into the underwriting fraud and appraisal fraud that if proven migfht have voided the note and mortgage CONTRACTS! See CONTRACT LAW 101 in your State statutes.

  5. Clive Pace says:

    I would download and share with at least 100 clients and associates, however, the download is not safe and is blocked by my security. maybe a simple pdf would work better than trying to have alternate software invade my PC – You seem like an illicit group that way – At least Macafee thinks so anyway.
    Love to circulate wjhet you have, but cannot.

  6. Thankyou very very much. Warriors against bank and bank enabler crimes are desperately needed/

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