Oh, It's Not Just Countrywide? (Mortgage Fraud)


 The Countrywide class-action lawsuit made a serious allegation – that Countrywide actively conspired to inflate property values, and thus keep the bubble going so they could continue to skim off fees.

Well, guess what – it appears it wasn’t just Countrywide……

In March 2010, after Lee’s ruling, a lawyer in the North Carolina case obtained more than 700 pages of e-mails that hadn’t been turned over in the Virginia case, during a meeting held in a hot tub so no one could wear a hidden tape recorder, court records state. The e-mails showed a Bank of America loan officer discussing the “recovery appraisals” with Dain and also with Mace Watts, who represented R.A. North Development.

In one case, plaintiffs lawyer Martin C. Conway said Friday, TRM wanted to sell a lot to a Northern Virginia woman for $380,000. But the e-mails showed that Bank of America’s first appraiser valued the lot at only $210,000. A second appraisal came in at $220,000. Finally, a third appraisal for the same lot came in at $385,000, and the loan was approved.

“Hadn’t been turned over”?

Were they subpoenaed?

If they were, that’s obstruction of justice and, likely perjury on top of it. 

So where’s the criminal referral so we can see some of this?

Handcuffs by genesis

Oh wait – here’s the excuse…

“Obviously,” the judge said, “these are material to this case and should have been produced in this case, before I spent all this time doing the order.”

The judge turned to Andrew J. Trask, Bank of America’s lawyer, and said, “What in the world happened here? Why weren’t these documents produced?”

Trask said “none of them originated out of Bank of America,” and that the judge had dismissed the bank from the case before they had to turn them over.

“It’s my fault,” the judge said. “I was moving too fast.”

Or did Bank of America deliberately stonewall production and file motions to get dismissed from the case knowing they had damning evidence that they would otherwise have to produce?

Attempting to game judicial process is done all the time.  But what we never seem to see when it’s a bank doing it is a set of handcuffs come out of the bailiff’s pocket.

This needs to change, here and now.

Discussion (registration required to post)