bank_of_america_logoBank of America intentionally delayed applications from homeowners seeking a mortgage modification, lied to borrowers and even paid out bonuses to employees for denying applications and placing homes into foreclosure, according to statements recently filed by former Bank of America employees in the U.S. District Court in Boston.

The mega-bank is being sued by homeowners who didn’t receive permanent loan modifications under the Home Affordable Modification Program (HAMP) after they had made payments under a trial program. Those former employees’ statements were filed in an effort to bolster the plaintiffs’ request to gain class-action status.

 "It was well known among managers and many employees that the overriding goal was to extend as few HAMP loan modifications to homeowners as possible," Theresa Terrelonge, a former collector employed by Bank of America, wrote in a May 15 statement filed earlier this month.

Simone Gordon, formerly a senior collector of loss mitigation, wrote that "employees who were caught not carrying out the delay strategies that Bank of America instructed were subject to discipline including termination. Employees who were caught admitting that Bank of America had received financial documents or that the borrower was actually entitled to a permanent loan modification were disciplined and often terminated without warning."

U.S. District Judge Rya W. Zobel will consider a motion to certify the case for class-action status on August 1.

Former Employees: BofA Lied To Borrowers, Paid Bonuses For Foreclosures

by Laura Alix time to read: 1 min
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