Bank of America Fights Court Battle Over Purge of Nearly 2 Billion Foreclosure Records

“The flow chart shows that Bank of America corrected the lack of endorsements on original notes in open, active foreclosures by using unauthorized workers to surrogate sign endorsements on original notes with rubber stamps”

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Bank of America Fights Court Battle Over Purge of Nearly 2 Billion Records

  • At the heart of the dispute is the purge of 1.88 billion records. Bank of America, in a court filing, insists the records were copied, returned to the bank and still exist in its system.
  • Miami attorney Bruce Jacobs, a former prosecutor, says the bank got rid of loan records that he claims may have contained evidence of fraud.
  • Bank of America said he has it all wrong.

MIAMI – The nation’s second-largest bank is squaring off in a contentious court battle against a Miami real estate attorney who is accusing it of purging 1.88 billion records to conceal alleged fraud.

Bank of America, in a court filing, insists the records were copied, returned to the bank and still exist in its system.

But Bruce Jacobs, a former Miami-Dade County prosecutor, says the bank got rid of loan records he was seeking that he says may be evidence of fraud because the original records may have been altered by the bank.

“Bank of America thinks they’re untouchable,” Jacobs told CNBC. “They think they have so many zeroes in their bank accounts that they’re above the law.”

The bank, while declining repeated requests for comment, called Jacobs’ allegations in a court filing last month “simply a collection of grievances against the banking and mortgage industries generally.”

It said Jacobs’ “baseless charges of fraud, conspiracy, perjury and other allegedly illegal or improper acts” by Bank of America have never been proven. Jacobs “nevertheless continues, without a trace of shame or irony, to recycle these reckless and rejected accusations ad nauseum.”

Mortgage loan servicing and foreclosure abuses were at the heart of the landmark $25 billion agreement in 2012 between the nation’s five largest mortgage servicing companies, including Bank of America, and the Justice Department and 49 state attorneys general to compensate homeowners who were hit by the housing crisis.

The settlement focused on what the Justice Department called “mortgage loan servicing and foreclosure abuses” as a result of the housing bubble. Many of those abuses involved what is known as robosignings. The loans are supposed to be endorsed with correct signatures when they are processed, and not at a later date, which the Department of Justice says happened in thousands of cases.

The Miami case began in 2013 as a foreclosure lawsuit in Miami-Dade Circuit Court against a couple who own a condo in Bal Harbour, Florida. After a financial setback, the couple sought a loan modification from Bank of America, which serviced the loan, held by Bank of New York Mellon. Bank of New York Mellon sued for foreclosure. Originally, Bank of America was not a party to the lawsuit.

The foreclosure case was settled last year, and the couple, who had to file for bankruptcy, remained in their home.

However, Jacobs, who represents them, filed a countersuit against Bank of New York Mellon in which he made serious allegations against the two banks.

What Jacobs said he discovered over several years — according to court documents filed in his numerous foreclosure cases in South Florida and reiterated in an interview — are allegations that Bank of America deliberately acted improperly.

According to a timeline Jacobs spelled out in court records, he said he learned in 2015 that a company called SourceCorp did work for Bank of America. The company’s name appeared on loan records he had obtained through the discovery process in a separate Miami-Dade County foreclosure case. Jacobs said he found that odd because he had never heard of the company.

Court filings show that Jacobs filed a notice to take a deposition on Nov. 2, 2015, asking for more information about the loan in the case.

The following month, he filed a “notice of intent to serve (a) subpoena for deposition” on SourceCorp. That notice asks for “any relationships, agreements, work orders, instructions” related to the loan and Bank of New York Mellon and Bank of America.

In January 2016, a court-ordered subpoena was issued and served on SourceCorp.

Then in February 2016, SourceCorp turned over a copy of a contract with Bank of America.

Jacobs said he was stunned to learn through discovery in another case more than a year later that Bank of America had ordered SourceCorp to purge its records.

“And what I found out later is that as I’m going though that whole process, Bank of America has ordered SourceCorp to do a military-grade purge of all of their records, everything: 1.88 billion objects of data, metadata, encryption keys,” he said.

More from CNBC here…

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4closureFraud.org

Comments
4 Responses to “Bank of America Fights Court Battle Over Purge of Nearly 2 Billion Foreclosure Records”
  1. Isabel Santamaria says:

    Bank of America did the same to me and others when they used Urban Lending Solutions to lose docs and alter amounts and other info in their system to reflect negatively on mortgage victims as myself. BofA also used Urban and others to impersonate BofA’s Office of the President misleading me and many others to our detriment. Bloomberg wrote a piece on this and my story and I filed a lawsuit in 2014 and the federal court dismissed my case a year later. The courts aid and abed this fraud and that’s why Bank of America and the other criminal banks think they are above the law. I am now suing these criminals and their cohorts for violating my civil rights as a disabled person during foreclosure proceedings. Here is the Bloomberg article on my story. Nothing has been done about this racketeering: https://www.scribd.com/document/384867118/Secret-Inside-Bank-of-America-Office-of-the-CEO

    • nadianasrawi says:

      I’ve been cheated mislead by @WellsFargo stole my home due to their Fake modification we r elderly! WFB calculate how they like lie I tried w Kyhc but then cunniever WFB changed my servisor to Christians then kyhc couldn’t continue to work out then cunning WFB transferred my loan to BSI they never returned my call it’s all premeditated foreclosure my priest called @WellaFargo told them he witnessed every step of the way! The executive M King wanted to rescind and reverse the foreclosure we talked to her on Frid to cont next day on Mon.! Then guess what happened ? M King gots terminated

      • elaine021455 says:

        Unfortunately what Wells Fargo is doing to you is common practice. WF wants to “distance” themselves as much as they can before you and others similarly situated get wise. The reason they will not give you a modification is if they do they will have to open their books. If they open their books their fraud will become public knowledge. It’s really as simple as that. Stay in your home and don’t pay – save all the money you can to get into a rental. You cannot and will not win. We had a similar situation with BONY. We fought for 5 years. We had to stop fighting because we were all out of money, out 401k was gone. For what we spent we could have gotten another house. It;s not fair but you will not win. Believe me.

    • elaine021455 says:

      Isabel I am sorry to hear about what happened to you but you know what? BofA doesn’t care. BofA is untouchable. You need only look at their board members, how much money they spend on lobbying and how much they contribute in campaign money. Do you or I have that kind of money? Of course not. Disabled or not it doesn’t matter to them. They don’t care and neither does your local housing authority or your local government. They just don’t. Who else can waltz into a court of law with fabricated, false, backdate ‘entries” robo signed foreclosure documents, etc. and get away with it? Bingo. Not you. Not me. But BONY did just that through the foreclosure mill of Shapiro & Burson. It got so bad here in Maryland they got rid of John Burson – it seems he took the fall for all the other illegal filings. They then renamed themselves Shapiro & Brown. Christine, a dumb bunny of a woman who stepped in to ‘fix’ the mess. But the mess prevails. Judges in Baltimore County do not care about fraud upon the courts. This is what my last attorney pleaded – to deaf ears. I should have know better when he (the attorney) stopped by an ATM machine on the short walk to court. Guess where he banked? BofA. I almost fell over. I should have saved my money. That guy had been an ‘noted Towson attorney’ who was not about to go in front of judges that he had been going to for 30 years and do his best at getting me a fair deal. The fight was over before it began. Save your money. Move to a rental – YOU WILL NOT WIN.

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