Saturday, May 28, 2011

KofC sues BofA

First the Mormons, now the Catholics. The Knights of Columbus are seeking a court order to allow them to look into the fraudclosure practices of Bank of America. Bank of America is not specifially named in the lawsuit, but the Bank of New York is.
Knights of Columbus requested the court order in a lawsuit against Bank of New York Mellon Corp. (BK) that seeks an accounting of two trusts that hold mortgage loans. Knights of Columbus owns mortgage securities in the two trusts, for which Bank of New York is the trustee, according to the complaint.

The complaint doesn’t assert any claims against Bank of New York or seek damages, Kevin Heine, a spokesman for the bank, said in an e-mailed statement.

An accounting is necessary to learn of losses to investors stemming from failures by Bank of America to promptly pursue valid foreclosures and sell homes it has seized, Knights of Columbus said. The group also said investors have no assurance that fees and costs associated with so-called robo-signing are being borne by Bank of America or being passed on to investors.

Robo-signing is the practice by bank representatives of signing foreclosure paperwork without verify the information in the documents. Expenses include attorneys’ fees for fixing paperwork and defending government investigations into mortgage- servicing practices, and any resulting settlements, according to the complaint.

Given the sacklessness of Eric Holder's Justice Dept., ultimate accountability may never materialize, but it is good to know that at least some bankstas are scrambling to deal with lawsuits, which aren't exactly revenue-generating endeavors.