Bank of America Impeding Investigation of its Loan Mod Practices by Negotiating Secret Settlements with Borrowers Who Must Agree Not to Criticize the Bank

“The settlement agreement purposefully makes it impossible, legally and practically, for a consumer signing it to come forward, voluntarily and promptly, to provide evidence in this case.”

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Bank of America Settlements Impede Fraud Probe, Arizona Says

Jan. 26 (Bloomberg) — Bank of America Corp. is impeding an investigation of its loan modification practices by negotiating settlements with borrowers who must agree to keep them secret and not criticize the bank in exchange for cash payments and loan relief, Arizona officials say.

The Arizona Attorney General’s office is asking a court to block those aspects of the settlements and require the bank to turn over all the agreements. The bank denies any wrongdoing.

One 2011 accord involving a borrower facing foreclosure who defaulted on a $253,142 mortgage included a $5,000 payment, plus $7,500 for legal fees, and the defaulted payments were waived and the loan was modified to a 40-year term with a 2 percent interest rate, court documents show. The terms of the original loan and the borrower’s complaint about the lender weren’t described in the documents.

The borrower “will remove and delete any online statements regarding this dispute, including, without limitation, postings on Facebook, Twitter and similar websites,” and not make any statements “that defame, disparage or in any way criticize” the bank’s reputation, practices or conduct, according to documents filed in state court in Phoenix. The borrower’s name and address were redacted.

Check out the rest here…

The case is Arizona v. Countrywide Financial Corp. CV2010-033580, Arizona Superior Court, Maricopa County (Phoenix)

Copy of the docket here…

Original complaint below…

This is EXACTLY why we should no longer be negotiating with the CRIMINALS.

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From the 2010 Press release.

Office of Attorney General Terry Goddard

Office of Attorney General Terry Goddard

AZ State Seal

Terry Goddard Charges Bank of America with Mortgage Fraud

(Phoenix, Ariz – Dec. 17, 2010) Attorney General Terry Goddard announced that his Office today filed a lawsuit against Bank of America Corporation and its affiliated companies (“Bank of America”) alleging violations of the Arizona Consumer Fraud Act and violations of the consent judgment entered in March 2009 between Arizona and the Countrywide companies owned by Bank of America.

The lawsuit, filed in Maricopa County Superior Court, was triggered by hundreds of consumer complaints and follows a year-long investigation into Bank of America’s residential mortgage servicing practices, particularly its loan modification and foreclosure practices.

Goddard stated that Bank of America, the nation’s largest residential mortgage loan servicer, should be leading the way out of the country’s foreclosure crisis. Instead, he said, “Bank of America has been the slowest of all the servicers to ramp up loss mitigation efforts in response to the housing crisis. It has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole.”

The complaint asks the court to hold the defendants in contempt for violating the consent judgment and to order them to pay restitution to eligible consumers and civil penalties, attorneys’ fees, and costs of investigation to the State. It further asks the court to order the defendants to pay up to $25,000 for each violation of the consent judgment and up to $10,000 for each violation of the Arizona Consumer Fraud Act.

Goddard noted that Arizona has been particularly hard hit by the foreclosure crisis, as evidenced by recent reports ranking the state second behind Nevada in foreclosures. Nevada plans to file a similar lawsuit against Bank of America today.

The consent judgment was entered into on March 13, 2009 to resolve the Attorney General’s allegations that Countrywide had engaged in widespread consumer fraud in originating and marketing mortgage loans. In the judgment, Countrywide agreed to develop and implement a loan modification program for certain former Countrywide borrowers in Arizona. Bank of America acquired Countrywide on July 1, 2008 and has assumed responsibility for Countrywide’s compliance with the consent judgment.

The complaint filed today alleges that, since the consent judgment was entered, Bank of America has repeatedly violated the judgment’s provisions related to loan modifications. Instead of providing the relief to which eligible homeowners were entitled, Bank of America has failed to make timely decisions on modification requests and proceeded with foreclosures while modification requests were pending in violation of the agreement.

The complaint also alleges that Bank of America has violated the Consumer Fraud Act by misleading Arizona consumers about its loss mitigation process and programs, including matters such as:

  • Whether homeowners must be delinquent on their mortgage payments to be considered for a loan modification.
  • How much time it would take to receive a decision from Bank of America on a modification request or a short sale request.
  • Whether foreclosure would proceed while a modification or short sale request was pending, or while a homeowner was making trial payments.
  • Whether the homeowner had been approved for a loan modification.
  • Failure to provide valid reasons why the homeowner was declined for a modification.
  • Whether the homeowner would be approved for a permanent modification if the consumer successfully made all trial modification payments.

As a result of Bank of America’s deceptive practices, many homeowners who were already contending with other financial hardships have been led to unnecessarily deplete their dwindling savings in futile attempts to obtain the promised relief and save their homes. Many homeowners who tried to obtain a modification from Bank of America ended up owing more principal on their loans or having less equity (becoming more “underwater”) in their homes. Others gave up their chances to pursue other financial options, such as short sales, while trying to modify their loans with Bank of America. These consumers endured months of frustrating delays, not knowing whether or when they would lose their homes. They called Bank of America and resubmitted their paperwork over and over again in futile efforts to get the help they were promised.

“I am filing this lawsuit today because, after years of delay and broken promises, Arizonans should not have to wait any longer to seek redress,” Goddard stated. “Our homeowners and communities need and deserve relief. Bank of America must be held accountable for its deceptive conduct and failed commitments.”

This case is being handled by Consumer Advocacy Division Chief Susan P. Segal and Assistant Attorney General Carolyn R. Matthews.

Goddard urged all homeowners who are in or are facing foreclosure to seek assistance as soon as possible. Homeowners can speak with a HUD-approved housing counselor by calling the Arizona Foreclosure Prevention Helpline toll-free at 1-877-448-1211. Borrowers who believe they have been the victim of mortgage fraud or other scams should contact the Attorney General’s Office at (602) 542-5763 or by filing a complaint on the Attorney General’s website, at www.azag.gov. Additional foreclosure prevention resources are also available on the Attorney General’s website.

mp3 Terry Goddard on Bank of America Mortgage Fraud.mp3

SOURCE: Arizona Attorney General

See Also:

State of Nevada vs Bank of America – Nevada Attorney General Sues Bank of America for Deceiving Homeowners

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4closureFraud.org

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State of Arizona vs. Countrywide, Bank of America, et al

2009 Arizona vs Countrywide Consent Judgment

Arizona Borrower’s Bill of Rights

FAQ’s regarding the State’s Lawsuit against Bank of America

Comments
18 Responses to “Bank of America Impeding Investigation of its Loan Mod Practices by Negotiating Secret Settlements with Borrowers Who Must Agree Not to Criticize the Bank”
  1. Jason Werner says:

    They all require that garbage, “Don’t talk bad about us game.”

    FDIC even did a good job sneaking it into my case, see my name in federal court.

  2. lvent says:

    Ron Paul says he is championing America being on a GOLD STANDARD under the U.S. CONSTITUTION..THE QUESTION I HAVE FOR MR. PAUL IS WHOSE GOLD WILL BE USING TO BACK THAT CURRENCY…IT HAS TO BE OUR GOLD..NOT ROMES OR THE WORLD BANKS OR THE ROTHSCHILDS OTHERWISE WE WILL ALL BE SLAVES!!!

    • lvent says:

      DID YOU HEAR ROMNEY SAY THE FRAUDCLOSURES HAVE TO GO THROUGH IN ORDER FOR THE ECONOMY TO GET BETTER!! THAT DIRTY BASTARD!!!! One thing looks clear…all of these politicians are invested in fraudclosures….Ron Paul didn’t want to talk about it and either did Santorum..Ron Paul said the GSE’s should have been auctioned off and the audience clapped? Why did they clap to that? Auction off what exactly..??? Mortgage fraud or two insolvent companies…? Who would buy either one? Or did he mean the Government should have auctioned off their half of the fraud? Did I miss something? YEAH..AUCTION OFF HUNDREDS OF TRILLIONS OF DEBT..THATS THE ANSWER!! TO WHO THE CHINESE ?? SO THEY COULD OWN HUNDREDS OF TRILLIONS IN INSOLVENT MORTGAGES…? I despise these crooks!

      • lvent says:

        Did you hear Romney and Gingrich rallying with the Israeli Govt…Check out the you tube video..Rothschild Dynasty:

      • lvent says:

        Google search the words..Foundation X…Vatican/Jesuits…..the Aldobrandini’s….The Rothschilds…

  3. lvent says:

    Watching the Florida Republicon debates on CNN..Cant wait to see Romney get ripped about his investments in Fannie Mae and Goldman Sachs…he is said to be fully invested in FRAUDCLOSURES AND MAKING MILLIONS OFF OF FRAUDCLOSURES..!!!

  4. lvent says:

    LOCAL NEWS REPORTING UNEMPLOYMENT ROSE TO 10% …….IN ILLINOIS …. GUN LICENSES ARE UP 6%..BODIES PILING UP AT THE COOK COUNTY MORGUE..NO MONEY TO BURY THE POOR WITH NO FAMILIES…MORE PROOF OF WASTE…FRAUD…THEFT AND ABUSE OF THE TAXPAYERS MONEY!!! Senator McConnel says we are heading towards the same road as Europe thanks to FAILED SOCIALIST POLICIES…AMERICA IS NOT BROKE SENATOR …THE BANKS AND WALL STREET ARE HOLDING OUR WEALTH HOSTAGE AND YOU POLITICIANS ARE SLLOWING IT…!!!! WE NEED STATE BANKS BACKED BY BY REVENUE FRO OUR OWN NATURAL RESOURCES..!!!

    • lvent says:

      Oops …..I meant to say you politicians are allowing the banks and Wall Street to hold America hostage..with their massive debt fraud and hoarding of our wealth..!

  5. lvent says:

    Watching the NWO mouthpiece Brzezinski on Charlie Rose talking about the evil plan for Globalization and how we Americans have to accept it..SCREW HIM….WE REJECT THEIR TYRANNY..NATIONAL SOVEREIGNTY IS THE ONLY WAY TO LIVE….TRADE IS OKAY…DEPENDANCE ON OTHER NATIONS FOR SURVIVAL IS NO GOOD!!!

    • lvent says:

      He is trying to say American Capitalism is ruining us…NO BRZEZINSKI, CRONY CAPITALISM IS…AND THE GOVERNMENT HIDING THE FACT AMERICA DOES NOT NEED ANY OTHER NATION TO PROSPER…WE HAVE EVERYTHING WE NEED TO PROSPER RIGHT HERE..RIGHT NOW..!

    • lvent says:

      Trade has to work both ways..almost everything we consume comes from othet nations…mostly CHINA….That is a criminal act of treason by the politicians who allowed that..! What nation could survive on consuming and not producing…NONE..!

  6. tonycat says:

    Ivent, do you know any foreclosure defense attorneys in North Carolina?

    • lvent says:

      @tonycat..you can find those in any state…they want you to negotiate with the financial terrorists..What we want is clear title and I don’t know of any attorneys in my own state willing to fight for that so called free house…I had a meeting a while back with a state investigator and a chief of police.. I told them I have been to a few of those what are they called attorneys? They both looked at each other and laughed and said yeah…what are those called?..We all had a good laugh on that one!..Only you can fight for your rights…look for a real estate attorney you might know to help you with your foreclosure case and do your own homework..that is the best advice I can offer..

      • lvent says:

        Woodknotgo..BUYER BEWARE!!! I went and met with two of those attorneys…guess what? They are playing for the other team..using Max’s knowledge against us..first you have to know the truth..then they cant fool you.

    • Deadbeat says:

      Tony…look up Max Gardner. Get a referral from him. Get online & get your self educated. I am three and a half years into my second fc case in Florida. It looks to me that ALL the attorneys know at the end of the day, the bank wins. Very few will advocate for you as I believe they would get snubbed by their buds at the country club..

    • woodknotgo says:

      google Max Gardner -he has a “boot camp” and teaches lawyers from all over the USA.

  7. lvent says:

    Screw them..! What are people doing negotiating with these criminals who committed $700 trillion dollars of fraud in our names..? Wake up America…WE ARE ALLOWING THE BANKSTER CROOKS TO THREATEN AND THERFORE TERRORIZE US??…..THESE BANKS OWE THE U.S. TAXPAYERS HUNDREDS OF TRILLIONS IN FRAUD!! A very reputable and trustworthy attorney gave me the best advice of all a while back…DONT SIGN OR AGREE TO ANYTHING….THE BANKS DEBT IS UNSUSTAINABLE. …….THEY ARE SETTING YOU UP TO FAIL IF YOU SIGN OR AGREE TO ANYTHING YOU ARE ESTABLISHING A NEW DEBT…!! ANOTHER FRAUDULENT INDUCEMENT!!!!!

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