Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

Foreclosure FalloutBank of America says Workers Lied About Loan Fraud

courier-journal.comJuly 14, 2013

Banks have agreed to reform mortgage lending, and refinancing sought by distressed homeowners, as a result of the National Mortgage Settlement, in which Kentucky Attorney General Jack Conway participated. Bank of America is one of five banks which settled with a coalition of states for practices described below. In mid-June, Conway’s office mailed more than $11 million to 7,801 Kentucky borrowers who lost their homes via mortgage servicing abuse. - Jere Downs

Bank of America Corp. said former workers who alleged the firm awarded bonuses for sending homeowners into foreclosure misrepresented their roles and made “impossible” claims about the lender’s assistance program.

The ex-employees, whose sworn statements were filed last month in a lawsuit against the bank, had limited roles that didn’t allow them to understand the full scope of efforts to assist distressed borrowers, the Charlotte, North Carolina-based company said today in documents in federal court in Boston.

The former employees’ “wild misrepresentations about their roles lead to impossible claims about what they did and saw,” Bank of America said. They “could not have witnessed what they claim to have witnessed because they were not in a position to do so and would not have witnessed such things in any event because Bank of America’s actual practices were diametrically opposite.”

Bank of America, the second-biggest U.S. lender by assets, is being sued by homeowners who claim the company didn’t comply with the government’s Home Affordable Modification Program. The borrowers said in court filings last month that the bank instructed employees to stall mortgage-modification applications, lie to customers and falsify documents.

Bank of America is seeking to block the plaintiffs’ efforts to proceed on behalf of a class of homeowners. The lender unsuccessfully tried to get the complaint dismissed in 2011. U.S. District Judge Rya Zobel scheduled an Aug. 1 hearing to consider the class-certification request.

Loan collectors were given $500 bonuses and gift cards to retailers including Target Corp. and Bed, Bath & Beyond Inc. for putting customers into foreclosure, one of the ex-employees said. In sworn statements filed today by the bank, supervisors of those workers said that they didn’t give incentives for improper behavior and that the bank made good-faith efforts to help distressed borrowers.

“I never provided incentives such as gift cards or cash to employees who declined or delayed HAMP applications,” said Andre Phelps, a senior consultant in the lender’s division managing troubled loans. “Nor am I aware of any other bank employee who provided gift cards or cash for doing so.”

Bank of America said six of the seven former workers were fired for inappropriate behavior. Some were call-center employees active in departments not directly related to HAMP, the firm said. Steve Goodman, a human resources executive at the bank, said in a filing that some of the workers had threatened colleagues or were released for poor performance.

Loan Modifications

The bank also responded to claims that borrowers who qualified for HAMP were funneled into foreclosures or private modifications because those were more profitable. Some were offered modifications at a 5 percent interest rate, compared with 2 percent under the U.S. program, one ex-worker said.

“This claim is false not only because Bank of America had no such strategies or policies, but because” HAMP loans were often more profitable because of federal incentives, said David Steckel, a home-retention executive at the lender.

One former employee said the bank cleared its backlog of HAMP applications in a “blitz.” Applications were denied when financial documents were more than 60 days old even if the homeowner had provided all required documents and complied with terms of a trial modification, the ex-employee said.

Working Overtime

Bank of America countered in its filing that blitzes occurred when bank employees worked overtime on nights and weekends to call homeowners and obtain documents needed to process their loan-modification requests.

“Blitzes were used to help approve applications, not deny them,” the bank said.

Steve Berman and Gary Klein, attorneys for the homeowners, didn’t immediately respond to e-mails seeking comment about the bank’s filing.

The case is In Re Bank of America Home Affordable Modification Program (HAMP) Contract Litigation, 10-md-02193, U.S. District Court, District of Massachusetts (Boston).

—Editors: Andrew Dunn, Stephen Farr

 

Back to July 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer
Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:


 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Sutton Law Firm, P.L.L.C.

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Phone: 832-932-3951
Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved