Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Bank of America paid $315 million to settle crisis-era lawsuits

charlotteobserver.com | May 6, 2015

By Katherine Peralta

Charlotte-based Bank of America has paid $315 million to settle a pair of financial crisis-era lawsuits over who should pay for the multibillion dollar fraud at failed lender Taylor Bean & Whitaker Mortgage, The Wall Street Journal reported Tuesday.

The lawsuits were brought by Deutsche Bank and BNP Paribas, whose mortgage units had invested in notes issued by Taylor Bean’s Ocala Funding unit, a mortgage conduit. The two banks sued Bank of America, which acted as an intermediary between investors and Ocala, in 2009 for $1.75 billion when Taylor Bean went under and the notes soured.

“Resolving these claims is a substantial achievement in our efforts to recover losses suffered on Ocala,” Deutsche Bank spokeswoman Renee Calabro told the Journal.

A Bank of America spokesman declined to comment, and a representative from BNP Paribas couldn’t immediately be reached for comment.

Bank of America said in a regulatory filing in April that it had settled the Ocala litigation. In its quarterly report, the bank said the $315 million settlement payment was fully accrued as of Dec. 31, 2014.

Taylor Bean created Ocala in 2005 to buy home loans, which it bundled into securities and sold to investors. The scheme was part of a seven-year fraud orchestrated by Florida businessman Lee Farkas, who is currently serving a 30-year prison sentence just north of Raleigh.

The fraud also resulted in the collapse of the firm’s main lender, Alabama-based Colonial Bank.

When Taylor Bean’s mortgage assembly line collapsed in 2009, banks, investors and the Federal Deposit Insurance Corp. all denied responsibility, and Bank of America and the FDIC sued each other. As the receiver for 26 failed banks, Bank of America agreed to pay $1.03 billion to the FDIC as part of its settlement with the Justice Department.

Prosecutors have called Ocala one of the biggest bank frauds in U.S. history.

 

Back to May 2015 Archive

 

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:



 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package