Our Firm Takes on Bank of America: Why Were Billions of Documents Purged
We’re proud to say that our fight against one of the country’s largest banks has now made national news. CNBC has reported on our fight against Bank of America, in a lawsuit that could uncover more bank fraud even now, years after the financial meltdown began.
How the Suit Started
The first thing to understand is that banks didn’t foreclose on homes by themselves. Instead, they had the help of loads of third party contractors. Some were used to help record mortgage transfers in every state. Some were used to draft and send out demand letters. Some were used to draft and record assignments of the mortgage. As a general rule though, most were used to make things easier for bans to foreclose, and often, to skirt state laws.
Our suit involves a company called SourceCorp that we learned out through obtaining documents in foreclosure cases. What was odd was that we had never previously heard of SourceCorp—when you do this much foreclosure defense work over this many years, rarely does a company you don’t recognize pop up. So we looked further into it.
It appeared that SourceCorp (now called SourceHOV) was doing work for and on behalf of Bank of America and Bank of New York Mellon, and some of that work was the storage and maintenance of loan and foreclosure documentation.
Destruction of Bank Documents
After obtaining more documents and contracts regarding the relationship between these companies, SourceCorp was retaining documents from the banks, but upon instruction, had to destroy them when and if the bank requested.
Sure enough, Bank of America had instructed SourceCorp to destroy literally billions of pieces of data and information about Bank of America that SourceCorp had. Coincidentally (or not), the instructions to purge or destroy Bank of America’s records came just days after we had noticed a deposition in a foreclosure defense case involving Bank of America.
If you know anything about the foreclosure crisis, you know how much fraud was involved. In 2012, major banks agreed to pay billions of dollars to settle allegations of fraud in foreclosure cases. Numerous bank law firms were investigated for filing false documents. So when a bank orders a vendor to start shredding billions of papers and data, it’s something to be concerned about.
Other documents obtained in separate cases revealed that Bank of America stamped false endorsement signatures, used to evidence transfers of loans from one company to another, and generally would resist providing documents requested in foreclosure cases.
Hiding the Ball
That is in fact what Bank of America is doing in our case. It will be up to a judge whether documents needed to show why so many documents were suspiciously shredded or destroyed must be produced by the banks.
Bank of America claims it did nothing wrong. Often however, refusal to give information is not an indicator of innocence.
At Jacobs Legal, we expose bank fraud and investigate falsified foreclosure documents. Contact us to schedule your free initial consultation if you are involved in a foreclosure case.