New Bank of America whistle-blower emerges: More customer abuse secrets
Bank of America whistle-blower details latest scheme to abuse homeowners, evade settlement rules and pocket cash
By David Dayen
Last week, I detailed bombshell revelations from Bank of America whistle-blowers, in which former employees of the bank detailed systematic fraud and deceptive practices inside their loan modification department — including bonuses and Target gift cards for staff who racked up foreclosures.
Now, another new lawsuit, featuring a separate whistle-blower, contains additional remarkable revelations – and may shed light on Bank of America’s strategy in getting out from under the mountain of legal exposure and costs in which it now finds itself. Simply put, the bank seeks to pocket quick cash and evade practices set forth in major settlements – by cashing out of the subprime mortgage servicing business. The result would be to leave struggling homeowners back at square one, with even fewer protections to avoid foreclosure.
First, some background. Over the past year, non-bank servicers like Nationstar and Ocwen have been buying up servicing rights to millions of mortgages, gradually positioning themselves to become the biggest companies in the space. These non-bank servicers, which process monthly payments and deal with foreclosures but do not originate loans, have an asset not available to their big bank colleagues: They haven’t yet been officially caught scamming customers. Therefore, they are not a party to the various servicer settlements brought by state and federal regulators, and they need not submit to those settlement guidelines. This includes rules like establishing a single point of contact for borrowers, stopping foreclosure operations when a modification is in process (ending what is known as “dual track”) and facilitating proper payment processing.
All of this has come to a head in a class-action lawsuit filed by Leonard Law Office in Massachusetts against Green Tree Servicing, a non-bank servicer based in St. Paul, Minn. As detailed by an insider at Bank of America in a packet of documents, in January 2013, BofA sold servicing rights to 650,000 mortgages (worth $93 billion) to the parent company for Green Tree.
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Well isn’t this very interesting and revealing, such idiots they are, they can not continue the charades, just won’t work. TY 4closure, you are the best 4 sure, will pass on to those I know that have BOA loans, more ammo for the down trodden. now to get the other idiots to do the right thing.
This ONLY proves beyond a reason of doubt of the GUILTY verdicts of FORECLOSURE FRAUD by the AG that they were handed down on December 23, 2010….
AS a matter of fact they NEVER HAVE STOPPED, after they were paid by the 2008 TARP, has been given government protection against losses on $118 billion in assets and has received $45 billion in federal assistance ARE STILL double dipping on secured defective assets, and HAS VIOLATED ALL THESE CONSENT JUDGMENT ORDERS.
REALLY????????
The LIES, DECEPTION, PERJURY of ALL being in DISHONOR.
There’s NO more Honesty in this Place anymore.
THESE people NEED to do their JOBS and STOP creating SMOKE AND MIRRORS..
SEND them ALL to JAIL or GIVE BACK THE STOLEN homes because UCC law says NO CLEAR TITLE PASSES with THEFT.
where are the msr whistleblowers like me for chase.
they are the largest mortgage servicer in the world.
David