Bank of America whistle-blower’s bombshell: “We were told to lie”

Bank of America Stealing Homes

Bank of America whistle-blower’s bombshell: “We were told to lie”

Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.

The government’s Home Affordable Modification Program (HAMP), which gave banks cash incentives to modify loans under certain standards, was supposed to streamline the process and help up to 4 million struggling homeowners (to date, active permanent modifications number about 870,000). In reality, Bank of America used it as a tool, say these former employees, to squeeze as much money as possible out of struggling borrowers before eventually foreclosing on them. Borrowers were supposed to make three trial payments before the loan modification became permanent; in actuality, many borrowers would make payments for a year or more, only to find themselves rejected for a permanent modification, and then owing the difference between the trial modification and their original payment. Former Treasury Secretary Timothy Geithner famously described HAMP as a means to “foam the runway” for the banks, spreading out foreclosures so banks could more readily absorb them.

Rest from Salon here….

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4closureFraud.org

Comments
2 Responses to “Bank of America whistle-blower’s bombshell: “We were told to lie””
  1. tim says:

    Start posting addresses of big bank CEO’s….let the angry victims deal w them!……

  2. If the bank’s were an occupying army — AND THEY ARE! — those who aid and work for them would be considered collaborators and executed for treason! Theses so-called “whistle-blowers” say they were “forced” and used,” but they’re NOTHING but complicit monkeys that fuel the machine foreclosing on America!

    They did it for the MONEY, just like ANY bank executive! They weren’t exactly complaining while they were getting paid, now were they?

    Whatever their reasons for coming forward, hopefully something SUBSTANTIAL will come out of it from the courts or elsewhere. But otherwise, I can’t exactly look on these individuals as “victims” or “hapless” accomplices, “forced” to do anything against their “good conscience.”

    They did it for the MONEY! Simple.

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