HUD Settlement | Bank of America Fined $175 for Failure to Offer Alternatives to Foreclosure

B of A Signs HUD Pact Over Mortgage Abuse

The Department of Housing and Urban Development has reached a settlement with Bank of America that releases the company from liability for failing to adequately provide alternatives to foreclosure on 57,000 delinquent government-insured mortgages.

The agreement, a draft of which was obtained by American Banker, was previously undisclosed. It has been forged on a separate but parallel track from continuing settlement talks between Bank of America, state attorneys general and other regulators over alleged mortgage origination and servicing failures.

B of A’s pact with HUD requires it to waive a minimum of $10 million in unpaid mortgage payments and vet each of the 57,000 delinquent borrowers for a possible loan modification, short sale or other foreclosure alternative.

“Our total costs for the program will be multiples of that” $10 million minimum, B of A spokesman Dan Frahm said. The deal calls for measures to “ensure these customers have every opportunity to stay in their homes,” he added.

After such outreach, the settlement paves the way for B of A to foreclose on homes that borrowers could not afford even after a mortgage modification and those that have been left vacant by owners.

Rest here…

Wow, it really pays to be a criminal.

$10 million divided by 57,000 = $175.44
(and this is without taking out the attorney’s fees and costs)

If you want to read the settlement and really get incensed, I included it below…


h/t Alina


Bank of America Hud Settlement

11 Responses to “HUD Settlement | Bank of America Fined $175 for Failure to Offer Alternatives to Foreclosure”
  1. maggie May says:


  2. pamelag says:

    this is why timmy g is giving fred and fan more $$ and ivent is right, they all are each other. so then,fred and fan can GIVE more $ to the fn banksters. the consumer group set up by obama has a BIG rule ‘don’t let the banks go out of business’! GOD BLESS US ALL

  3. Pete Everts says:

    BBQ a banker.

  4. Flex says:

    Are you loving it? I am loving it now. NO matter what settlement the banks, the servicers, the crooks of Wall St. and every sleazy con artist in America will do with the AG, the SEC, the FTC, the Legislators, the Regulators, or any government agency, they will always get away with murder. Please take a look at the history of every settlement out there. This is another way to cover up more of their wrong doing. As we know, if there is any regulation or investigation, they used their best buddies in the government as we called the fox watching the hen house. If there is any new senator bill proposed to pass, the banks lobbyist will kill it immediately or gets mixed with many other proposals to make it almost invisible or unknown to the public that no one ever know what happened to it, like the bill from the senator in Arizona.
    Since I can read and understand English in this country, I have never seen so much corruption and illegal scandals in the whole world. It is so amazing that the American people don’t even raise a voice, don’t even protest or fight back. It is like they are all zombies or they had been given a drug no to feel a thing, no matter what happens in this country. Their ignorance is the same like the lack of care for the fellow human being.
    The news are inundated with war in the middle east, riots and protest in Syria, Libya, and now the UK.
    Hundreds and Thousands of people die every month in many of these countries and we don’t give a darn.
    Just like millions of people are losing their homes every year and even if we hear all the robo-sign, the forgery of signatures, the scandals of the criminal banksters recreating all the documents fabricated by Foreclosure Mills like Docx, LPBS, and many others from Florida to the Philippines, the worse ever imagine, using the legal system to submit Affidavits by Attorneys representing the banks to commit perjury by the very legal way under the constitution and the black letter law in this country. This had hurt the most to the American People because they had lost trust in the justice system in this country. We all know that many Judges are under the payroll of the banks, many retirees Judges were offered millions of dollars to expedite the robo dockets, becoming robo-signer themselves just to take advantage of the chaos of the biggest Fraud in the history of the world.
    Recently I heard a comment from the Frenchs, saying Americans are so civilized that they don’t even make a sound when the Oil companies raise the price of gas to $5.00 per gallon.
    The French recently protested the raise of the gasoline price by rioting on the streets and burning tires. In America, we are so civilized that we don’t even know who own our mortgage. We don’t even know how the Federal Reserve works. We don’t even know how the banking system works. We don’t even teach our children how to balance a check book. Americans are too busy watching football, baseball, basketball, dancing with the stars, American Idol, and every show on TV until we drop dead in the couch after 6 to 8 hours of TV a day that we don’t even know what day it is. Then they can not wait to empty their wallets every Sunday at the movies. Every week, I heard the record braking of every new Hollywood release by the 65 million dollars. Wow! what economy?
    The truth as we know it. No matter how much money any government agency settled with the crooks, the American People will never see a dime. First, because it is just to show they are doing something. Second, we never hear about it again and we don’t know if the crooks ever paid. Finally, we never know if any agency collected the money and if they put the money for a good use or a good cause.
    Let’s see just for the heck of it, of all the billions of dollars the FEDS had settled in the last five years with all the banking institutions, from BOA, to our old friend Maddox. From Country Wide to Citybank or any lizard out there who claimed to have settled from Millions to Billions. How much money can you show me in the books that are being used to help the victims of those crooks, the home owners, the investors, the teachers, the fire fighters, the policemen, the blue collar employees who works for peanuts, and had lose their jobs?
    Now, all we hear is the aftermath of the debt ceiling settlement. First, the Dow Jones going down more than 500 points in one day. Everyone is talking about the down graded of the phony triple AAA rating that has been in this country for over 100 years. Let’s see, if I don’t make a payment of my bills, my credit score goes down more than 100 points. If the US Government does not pay their bills and borrow more than 75 Trillion Dollars in less than 90 years, they still have a triple AAA credit rating. Uhmmm….. very interesting! How it is that all of the suddenly after agreeing with the debt ceiling, their credit rating gets affected? Was this also planned or is this another way to say to the American people, Americans get ready for a double dipping inflation. from now on. expect interest rates rise, food price rise, gas price rise, and of course, as expected, more millions of people without employment and more millions of people losing their homes in foreclosure. What a ripple effect we all are looking forward to see in the next 2 or 3 years. So if you ever wonder, when will America recuperate this economy? Don’t hold your breath, because the way we are going, we will not last until Christmas this year.
    The message is loud and clear, if you want to do something for yourself, your love ones, your neighbors, your friends and the fellow human being out there, you better start caring, because if you don’t, guess what Mr. American, you are next and they are coming to get you, ant there is nothing you can do about it.
    What is really sad, you will do nothing because you are waiting for somebody else to do something. Since no one will do anything, this is why they will do whatever they want because they already know you are going to do nothing.
    I already did something. I am writing you and the whole country to learn, to get involve, to care for yourself, to care for your fellow human being, to protest even if it is in a civilized way, to organize, to share the knowledge, to fight back, because if you don’t, you will be dust in the wind, and you will never know you were here.
    God Bless You and God Bless America,
    A concern citizen.

    • Killer Bee says:

      Hello my fellow Americans

      Good news for you, “The Sleeping Giant ” is waking up…he very very upset and he’s coming strong.

      AMERICA’S VICTIMS of FORECLOSURE is a legitimate non profit corporation, duly registered in the State of California, aim to structure a nation-wide class-action lawsuit against the Banking Industry and the Federal Institutions.

      AVF is not associated in any way or means to any Law Firms, Real Estate Associations, Political or Religious Party. AVF is solelly organized by Victims of Foreclosure themselves.

      The Giant (AVF) will be 8 million strong … does anybody realized that we are (today) 32 million Americans displaced from their homes? and 20 million more in the books?

      Did you ever feel like a little bug fighting against King Kong (the banksters)?, fighting against Godzilla (Funnie Mae), fighting against Freddie Mac (T – Rex), fighting against the 6 Headed Fire Dragon (the Feds)? all at once?…how about throwing 5 million killer bees at them…we will sufocate them until they drop.

      One and a half year in the making. The founder secluded himself to become highly eductaed, have printed as much as 6 000 pages, read as many as 7 books, watch 7 movies, read at the least 10 000 individual comments (glanced to at least 50K) such as yours, seen at least 500 video clips. Quitely attended dozens of meetings held by lousy lawyers, scammers, liars, swindlers, cheaters, defrauders. Had heated arguments with law firms all across the country about their shoddy practices, (with all respect to those who have been practicing within the frame of the law).

      Stay tuned my friend. AVF is coming soon…The project will be released in about 30 days…keep in mind;

      The only difference between Wall Street, The Feds and us is money. Justice = MONEY. We’ll give you the formula to put it all together.

      You will hear names of the most intelligent and experienced people in the USA. Names that you never heard before, all of them anxious to take a punch at these crooks.

      Just multiply $ 250 (a one time contribution) x 4 or 5 million. There you have it.!!!

      Stay tuned!

  5. lvent says:

    HUD OR BOFA different name, same animal………THEY ARE FINING THEMSELVES…….THEY ARE PASSING THE BALL AROUND AND PUTTING ON A SHOW……INCLUDING THE S&P, CONGRESS AND THE OBAMA ADMINISTRATION……….They all work in concert with each other EVEN IN THE COVER-UP and are all either members, owned outright or owned by proxies of the ruling Global Elite, the new world order…

  6. Sure hope the Attorney General Rob McKenna’s lawsuit against RECONTRUST throws a damper on Bank of Americas crimes. This is so bad! We need to begin a lawsuit for breach of Honest Service causing economic loss by wire and mail “RICO” AGAINST HUD AND THE OFFICIALS ALLOWING THIS TO HAPPEN, AND MISREPRESENTING US. LOOK UP THE ELEMENTS OF THE “HONEST SERVICE ACT” IT FITS TO A ! MAYBE IF WE GO AFTER THE REAL CROOKS OUR REPRESENATIVES THAT ALLOW THEM TO GET AWAY WITH THIS IT WILL STOP. WHAT A *********BAD JOKE!

  7. maggie May says:

    Not really! They get it one way or another!!

  8. talktotennessee says:

    Document refers to a CD with names and addresses. Where can this information be accessed?

  9. valerie says:

    Another sweetheart deals for the banksters. When will someone get serious about prosecuting wrongdoers?

  10. talktotennessee says:

    Amnesty for banks, buyout collateral properties from investors/homeowners-pennies on the dollar, return as REO to market, selling for nickels, dimes and more. Gutting the housing market further, if possible.
    Lemonade from lemons!

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