Although we had assumed this was this case, we had hoped it was not true. This week our fears were confirmed. Six former employees of Bank of America spoke out about the financial incentives they had received for delaying and denying modifications for homeowners. “We were told to lie to customers,” said Simone Gordon, who worked in the bank’s litigation department until last February. “Site leaders regularly told us that the more delayed the HAMP loan modification process, the more fees Bank of America would collect.” The more borrowers they forced into foreclosure, the more money the Bank of America employees would receive.
In their sworn testimony, Bank of America employees described the various different tactics used to undermine borrowers. The tactics included, but were not limited to, denying qualified applicants, withholding reviews of completed applicants and stonewalling qualified borrowers to more costly in-house modifications.
According to William Wilson, a manager at their Charlotte, N.C., headquarters, some completed applications were denied one at a time, while other borrowers were rejected in a process known as “the blitz”.
“Approximately twice a month, Bank of America would order that case managers and underwriters ‘clean out’ the backlog of HAMP applications by denying any file in which the financial documents were more than 60 days old,” he said. “These included filed in which the homeowner had provided all required financial documents.”
We have had many clients throughout the years that had experienced many, if not all, of the tactics mentioned by these former Bank of America employees.
Have you been a victim of Bank of America? Please contact us (888) 728-0044 for a free evaluation.
Timothy McFarlin, Esq.