This short video isn't funny in the least, but should not be missed for anyone in the financial services sector, IT, or anyone else for that matter interested in privacy issues.
Remember a few years back when Countrywide, and Bank of America, would flex their muscles in front of their clients? Like, "We'll give you a great price, but we demand 50% of your volume be sold to us." And then there was, "We'll give you a warehouse line, but for our product only." That whole karma thing might just be for real. Looking at the big bank deals over the last 3-5 years, some worked out better than others, putting some banks at a disadvantage. An analysis by the WSJ finds Countrywide has cost Bank of America about $40 billion since the deal was closed. (Chase/WAMU and Wells/Wachovia did not go quite so badly, obviously.) And now Bank of America is being sued in Federal Court for civil mortgage fraud in a complaint seeking civil penalties as well as treble damages and penalties. The suit alleges that Fannie Mae and Freddie Mac lost over $1 billion because of defaulted loans fraudulently sold them by Countrywide Mortgage and BOA. The suit alleges the from at least 2007 through 2009 implemented a new loan origination process called the "Hustle," which was intentionally designed to process loans at high speed and without quality checkpoints, and which generated thousands of fraudulent and otherwise defective residential mortgage loans sold to Fannie Mae and Freddie Mac (the GSEs) that later defaulted. The Hustle continued under the ownership of BofA. Ah, fate...
...(read more)Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/10252012-bank-of-america-versus-us.aspx
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