Fort Lauderdale, FL (PRWEB) November 14, 2011

On November 14, 2011, Plaintiff Christine Ulbrich filed a nationwide class action lawsuit against GMAC Mortgage, LLC and Balboa Insurance Services, Inc. in the United States District Court for the Southern District of Florida. The lawsuit alleges that GMAC and Balboa illegally backdated force-placed insurance policies and charged borrowers for insurance coverage that was, in some cases, expired on the day it was purchased. The suit also alleges that GMAC and Balboa charged borrowers inflated premiums that were as much as 14 times the market rate. According to Plaintiff’s attorney, Kai Richter, “The whole point of insurance is to protect against future risks. Forcing borrowers to buy expired insurance at inflated premiums is inexcusable.”

The Complaint alleges that GMAC force-placed a windstorm policy on Ulbrich’s property in March 2011, which was backdated for the period from October 1, 2009 to October 1, 2010, and charged Ulbrich almost $10,000 for this already-expired coverage. The lawsuit further alleges GMAC sent Ulbrich a renewal notice on the very same date, stating that “the windstorm insurance coverage we placed on your account has expired,” and then force-placed a second windstorm policy on her property in April 2011, which was backdated by more than six months and cost more than $9,600. According to the Complaint, Ulbrich’s mortgage payments skyrocketed from $1,227.52 per month to $2,695.59 per month after GMAC purchased this backdated coverage, due to an alleged “shortage” in her escrow account. GMAC is now threatening to foreclose on her home because she cannot afford the increased payments, even though she previously was current on her mortgage.

“It is outrageous to drive homeowners into foreclosure by force-placing backdated insurance coverage on their property and charging them inflated premiums for expired coverage,” said Richter. “GMAC received billions of dollars in bailout money from taxpayers, and this is no way to say ‘thank you,’” continued Richter.

In her class action Complaint, Ulbrich seeks relief on behalf of herself and other similarly-situated GMAC borrowers across the country. Ulbrich asserts claims against GMAC for breach of contract, breach of the duty of good faith and fair dealing, breach of fiduciary duty, unjust enrichment, and violation of the Florida Deceptive and Unfair Trade Practices Act. In addition, Ulbrich also asserts an unjust enrichment claim against Balboa, which allegedly accepted premiums for backdated policies and allegedly paid a kickback to GMAC in return.

The case is entitled Ulbrich v.GMAC Mortgage, LLC and Balboa Insurance Services, Inc., No. 0:11-cv-62424 (S.D. Fla.). Plaintiff is represented by Kai Richter, Michelle Drake, and Timothy Selander from Nichols Kaster, PLLP. Nichols Kaster has offices in Minneapolis, Minnesota and San Francisco, California, and is currently pursuing several other cases against major banks for wrongfully force-placing insurance on borrowers, including JPMorgan Chase Bank, N.A., Bank of America, N.A., Wells Fargo Bank, N.A., and RBS Citizens, N.A. (also known as Citizens Bank), and U.S. Bank, N.A.. Additional information is located at http://www.nka.com or may be obtained by calling Nichols Kaster, PLLP toll free at (877) 448-0492.

###

Read the full story at http://www.prweb.com/releases/2011/11/prweb8964133.htm

Keller Rohrback’s investigation focuses on alleged abuses by Bank of America and JPMorgan Chase, among others, such as: failing to pay for hazard insurance out of the borrower’s escrow funds, charging homeowners for unnecessary insurance, backdating policies providing coverage retroactively, utilizing their own subsidiaries to provide the hazard insurance, and purchasing policies from companies who share fees or profits with the servicers—often without disclosing this information to the borrower. Keller Rohrback is also investigating the force-placed insurance practices of the following mortgage loan servicers:

Source: Keller Rohrback L.L.P.

While some lenders do utilize web-based proprietary systems (MortgageServ, Res.net, etc) for insurance and foreclosure tracking, the majority of the lenders in the US (including Bank of America, Aurora Loan Services, and OneWest) utilize the Fidelity LPS system, which is maintained by Fidelity National Financial. It seems almost impossible to believe all of our banks would allow a single point of failure in our nation’s financial systems, however a certain level of cockiness is certainly warranted after successfully pulling off the largest series of cons in our nation’s history.

The LPS system can be accessed several ways. Using Internet Explorer, Balboa and Assurant agents are able to query every field within the system via the web based Lending Portal Login for all of their clients. The information is then used to build all of the AxsPoint/Cool reports utilized to track Force Placed and REO information on the CCS & PAC systems. The tracker then places the information on Clientsource for the servicer to view.

These systems are all web-based, because while the banksters do practice “honor amongst thieves,” each individual banks still likes to hide a certain level of information from each other to allow the possibility of stealing from each other while stealing from you. Web-based systems allow them to control the information visible to each other.

The LPS System

Anonymous via his source post crucial information that has been known but not in detail.

Attorneys and Attorney Generals nationwide have been working diligently against the banks in order to keep their clients in their homes. You must keep in mind that there are several levels of indiscriminate behavior going on, keeping these efforts at bay. For now, however, I will give you a general overview of how some of the tracking systems interact and how the reporting works, so that those with the power to subpoena documents for their clients know where to find the correct documentation to support their individual cases, because as Abigail Fields points out, “It would certainly be provable/disprovable by subpoenaing documents.”

In order to do that, however, an attorney would need to know where to look. If you were to only subpoena generic loan information, you will only be provided with the System of Record (SOR) data, which previous posts have clearly proved do not show the full picture as there are several common ways of removing information from the system of record both individually and en masse. As the email trail clearly shows, there is always an audit trail in the back end if you know what to ask for.

Introducing Anonymous Pinko…

Tweet speaks louder than words… Perhaps there is something in the works for WF?

# # #

###

via GAWKER‘s  Adrian Chen:

A member of the activist collective Anonymous is claiming to be have emails and documents which prove “fraud” was committed by Bank of America employees, and the group says it’ll release them on Monday. The member, who goes by the Twitter handle OperationLeakS, has already posted an internal email from the formerly Bank of America-owned Balboa Insurance Company.

For full details go to Gawker.com

Email is between Balboa Insurance vice president Peggy Johnson and other Balboa employees

[Image OperationLeakS via Twitter]

Note this is incomplete but the basics:

Table Of Contents:

• Pg. 2. 2nd Supp. Note Deed Poll, Dated 11/072008, To The Note Deed Poll Dated 4/29/05
• Pg. 10. Bank of America Corporation on 1st July 2008 – Effective date of merger
• Pg. 15. Countrywide and Bank Of America Agreement And Plan Of Merger
• Pg. 116. Bank of America Corporation on 7th November 2008 – Debt Assumption
• Pg. 127. 6th Supp Trust Deed Dated 11/07/08, 11/07/08, Modifying The Prov. Of Trust Deed 5/01/98
• Pg. 138 3rd Supp. Trust Deed 11/07/08, To The Trust Deed Dated 8/15/05
• Pg. 148 UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
• Pg. 163. Countrywide Financial Corporation on 30th June 2008 – Consolidated Balance Sheet for
• Pg. 282. First Supplemental Deed Poll Guarantee and Indemnity

[ipaper docId=44612785 access_key=key-1r5gobfvmuza3pv9k102 height=600 width=600 /]