Looks like the Obama administration is finally drilling down to real facts and has stopped taking their information from the banks, which they have obviously found to be false.
Like the faked mortgage loans, it all comes down to dirty tricks, kickbacks and “screw the consumer” mentality.
Forced placed insurance served two purposes — (1) the Servicers got paid to do it and (2) it further enabled false claims for false amounts such that it was impossible for the borrower to reinstate any loan. This enabled their primary goal of sending as many borrowers into the torture chambers of foreclosures on the rocket docket.
The only thing they got wrong is that they continue to call them lenders. These were intermediaries who falsely claimed the loans as their own and caused closing agents to apply stolen funds to a loan closing in which a non-lender was named as lender.