Ex-Bank of America Employees Got Bonuses for Foreclosing, Lying to Homeowners
According to six affidavits from former Bank of America employees and one contractor, the nation's largest bank rewarded employees with bonuses for foreclosing on homeowners, even when loan documents contained a false reason to foreclose.
The affidavits, which are part of a civil suit against Bank of America, also claim the bank deceived homeowners and wanted foreclosures instead of loan modifications that would have saved homes for the owners.
According to the Palm Beach Post, the ex-employees claim that Bank of America's tactics included a “blitz” twice a month, which told case managers to deny any 60-day-old application for the Home Affordable Modification Program (HAMP), which was created by the Obama administration to help homeowners.
The former employees also claimed that Bank of America workers “who placed 10 or more accounts into foreclosure in a month received a $500 bonus. Bank of America also gave employees gift cards to retail stores like Target or Bed Bath and Beyond as rewards for placing accounts into foreclosure.”
Ex-employees swore that it was Bank of America's policy to sit on financial documents that borrowers had submitted, for 30 days, then label the the same documents “stale” and require the homeowner to reapply.
A former contract employee stated in his affidavit that he was told by Bank of America supervisors to “to find any pretext” to reject loan modification applications even when the homeowner had complied with the agreement.
A former Bank of America employee claimed that a Bank of America official canceled loan modifications because of “non payment," even though the files showed all payments had been received on time, more than 100 times.
Bank of America claims the allegations are false.
Source: Palm Beach Post