Here CW/BofA are denying loan mods to thousands of struggling homeowners and now the insurance companies are denying them insurance coverage on many of the loans they probably refused to modify.

And if these lenders finally do get insurance companies to pay, are they going to allocate some of the money towards those very loans for which these policies were purchased? Do they get the insurance money and the homes too? How does this work? Once all the “parties of interest” have been paid and satisfied, who gets the surplus left over from insurance policies, bailout funds, etc?