Bank Of America Calls Foreclosure Whistleblowers Liars
Bank of America is fighting back in court against former employees who claim the bank encouraged them to push homeowners into foreclosure instead of the government’s mortgage-relief program.
In a court filing on Friday seeking to keep homeowners from teaming up to file a class-action lawsuit, Bank of America’s lawyers said that the whistleblowers had “wildly misrepresented their duties at the bank” and declared that the claims they made were “impossible.”
Last month, in support of the homeowners’ lawsuit, seven former bank employees filed sworn affidavits claiming that Bank of America had encouraged them to push delinquent mortgage borrowers looking for relief under the government’s Home Affordable Modification Program (HAMP) into foreclosures or in-house mortgage modifications instead, so the bank could make more money. Some of the whistleblowers said that they had seen the bank offer rewards to employees, including $500 cash bonuses and gift cards to Target and Bed Bath and Beyond, for excellence in making borrowers’ lives miserable.
Bank employees were encouraged to doctor bank records, delay HAMP application processing and lie to customers in order to make this happen, the whistleblowers claimed. Bank employees who complained about the system were fired, according to their affidavits.
In its response on Friday, Bank of America says the whistleblowers had little or no involvement in processing HAMP claims and so couldn’t possibly have seen the kinds of things they claim they saw. If such things existed, which they didn’t, says the bank.