Recent news article state that according to sworn testimony by six former employees of Bank of America who explain what they saw behind the scenes while Bank of America was processing loan modification for homeowners allege that that Bank of America routinely denied qualified borrowers an opportunity to modify their loans to more affordable terms and instead placed them in programs that paid cash bonuses to bank staffers for pushing homeowners into foreclosure. These allegations were made in affidavits filed in a Massachusetts lawsuit.
According to the affidavits the Bank of America employees stated “We were told to lie to customers,” said Simone Gordon, who worked in the bank’s loss mitigation department until about February 2012. “Site leaders regularly told us that the more we delayed the HAMP [loan] modification process, the more fees Bank of America would collect.”
The article goes on to explain that Bank of America employees described a systematic effort to undermine the program by routinely denying loan modifications to qualified applicants, withholding reviews of completed applications, steering applicants to costlier “in-house” loans and paying bonuses to employees based on the number of new foreclosures they initiated.
According to the article, the employees’ sworn testimony goes a long way to explain why the government’s Home Affordable Modification Program, launched in 2008 during the depths of the housing collapse, has fallen so far short of the original targets to save millions of
Americans from being tossed from their homes.
Law Office of Ray Garcia, P.A.
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