If you’ve ever attempted to get a home mortgage modification through Bank of America, this news will likely not surprise you. If it’s true, Bank of America is a disgusting, horrible company. And I’m inclined to believe it is true, since SIX people are saying this is how things went down when homeowners applied for loan modifications under the federal Home Affordable Modification Program (HAMP)…
It doesn’t take much to explain what happened. The former employees of bank of America say that they were encouraged to “lose” paperwork from homeowners, and then later deny their modifications because they “hadn’t submitted their paperwork.” Employees received bonuses (ranging from gift cards to cash) for lying to homeowners and improperly denying modifications under HAMP.
William Wilson, a former BOA case management team manager, detailed how Bank of America would receive documents from homeowners in a timely fashion, but then not act on the mortgage modification requests for months. He said BOA claimed the “… documents were incomplete or missing when they were not, or simply claiming the file was ‘under review’ when it was not.”
Theresa Terrelonge, a former collector for Bank of America says that employees “… were instructed to inform homeowners that modification documents were not received on time, not received at all, or that documents were missing, even when, in fact, all documents were received in full and on time.” They were also instructed to close loan accounts and decline loan modifications based on failure to provide documents or information, even when the homeowners had provided all documents.
Steven Cupples was an underwriter and team leader at Bank of America. He says that employees were not informed that documentation from borrowers could could be maintained in five separate systems. Thus, borrowers were declined loan modifications for not sending documents, when the documents were sent and maintained in a system the employees hadn’t checked. He also says that BOA lied to the government about the number of loans in the modification process, and employees who challenged the ethical practices of BOA were fired.
Simone Gordon, a former senior collector at Bank of America says that homeowners would call to inquire about their modifications, and even though they submitted all their documentation and made their required trial payments, they were told that documents were not received. She says, “We were told that admitting that the Bank received documents would “open a can of worms” since the Bank was required to underwrite the loan modification within 30 days of receiving those documents, and it did not have sufficient underwriting staff to complete the underwriting in that time.”
Recorda Simon, a former home retention specialist for BOA, says that the bank had many people marked as delinquent in the computer system, even when they had modification agreements in place and were making payments as agreed. She says she saw borrowers who were current on their permanent loan modifications being sent foreclosure notices. Simon says she was told to lie to borrowers about the status of their modification applications.
Erika Brown, a former customer service representative at BOA, says that she was told to tell every homeowner that their file was “under review,” regardless of the actual status of it. Even loans that were modified were still shown in the computer system as delinquent, reported to credit agencies as delinquent, and p0ossibly sent to foreclosure.
Of course, Bank of America denies all of this. Who do you believe? My money is on the former employees.