Bank of America Foreclosure Reviews: How the Cover-Up Happened (Part IV)

Bank of America Stealing Homes

Bank of America Foreclosure Reviews: How the Cover-Up Happened (Part IV)

As we described in earlier posts in this series (Executive Summary, Part II, Part IIIA and Part IIIB), OCC/Federal Reserve foreclosure reviews meant to provide compensation to abused homeowners were abruptly shut down at the beginning of January as the result of a settlement with ten major servicers. Whistleblowers from the biggest, Bank of America, provide compelling evidence that the bank and its independent consultant, Promontory Financial Group, went to considerable lengths to suppress any findings of borrower harm.

These whistleblowers, who reviewed over 1600 files and tested hundreds more in the attenuated start up period, saw abundant evidence of serious damage to borrowers. Their estimates vary because they performed different tests and thus focused on different records and issues. When asked to estimate the percentage of harm and serious harm they found, the lowest estimate of harm was 30% and the majority estimated harm at or over 90%. Their estimates of serious harm ranged from 10% to 80%.

We found four basic problems:

The reviews showed that Bank of America engaged in certain types of abuses systematically

The review process itself lacked integrity due to Promontory delegating most of its work to Bank of America, and that work in turn depended on records that were often incomplete and unreliable. Chaotic implementation of the project itself only made a bad situation worse

Bank of America strove to suppress and minimize evidence of damage to borrowers

Promontory had multiple conflicts of interest and little to no relevant expertise

We discuss the third major finding below.

Comments
3 Responses to “Bank of America Foreclosure Reviews: How the Cover-Up Happened (Part IV)”
  1. Bank of America is trying to screw me and they have NO STANDING I am #179390507 since 1/09 this horrible Office of the pres.of BoA has put me in hospital, had notary in CA forge documents and then had Blank/Rome send a shake down letter with 2 NEW signatures on 1//31/12 that are FRAUDS. I have had enough of these RobberBarons and having now over 600 pages of crap from the esteem VP and my diary I think they have HUGE BRASS balls that are very tiny!

  2. Robert Tatge says:

    Highly concern when I was turned down twice on a refiniance, by Country-wide. All at once Fifth Thrid Bank, did the refinance. I believe Country-wide look at all the “QUIETIONABLE LOANS” and rush to remove them from thier books anyway they could, using known brokers that could get this job done!, before the transfer to BANK OF AMERICA. I believe they blind-sided them also…. You see Fifth Third Bank started right away with apprasisal imbeciling, loan application, and my credit report approving. Then after approval Fifth Third Bank, start with Forced Placed insurance at $500 per month more on the payment, I had automatically take from my checking acct., this caused me to cash in my 401k plans just to cover, later to find out, I had insurance and Fifth Third Bank paid for it out of my escrow…Then Foreclosure with all attempts to refiniance with them were refused.
    They were the predator that worked with Country-wide in all these dealings, and ended up unharmed! I want my home back, free and clear with compensation, A.S.A.P.
    without predice,
    Robert Tatge

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  3. robert tatge says:

    Highly concern when I was turned down twice on a refiniance, by Country-wide. All at once Fifth Thrid Bank, did the refinance. I believe Country-wide look at all the “QUIETIONABLE LOANS” and rush to remove them from thier books anyway they could, using known brokers that could get this job done!, before the transfer to BANK OF AMERICA. I believe they blind-sided them also…. You see Fifth Third Bank started right away with apprasisal imbeciling, loan application, and my credit report approving. Then after approval Fifth Third Bank, start with Forced Placed insurance at $500 per month more on the payment, I had automatically take from my checking acct., this caused me to cash in my 401k plans just to cover, later to find out, I had insurance and Fifth Third Bank paid for it out of my escrow…Then Foreclosure with all attempts to refiniance with them were refused.
    They were the predator that worked with Country-wide in all these dealings, and ended up unharmed! I want my home back, free and clear with compensation, A.S.A.P.
    without predice,
    Robert Tatge

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