Normally a headline like this would simply be “shocking” to read. However, anyone following this Foreclosure mess and the constant stream of Bank of America stories written by Matt Taibbi, of the Rolling Stone (Matt did not write this article), will not be shocked to read this headline. Unfortunately, its more like the “norm”, which is so sad, so wrong.
Myla and I have friends who are the “poster boy” case of these types of BofA stories. Everybody has always known this type of behavior was going on, now it’s confirmed! Folks that had suffered some economic problems from a business they owned that they lost during the past few years of economic trauma. But, who have substantial W2 income from their regular employment. Folks that should absolutely qualify for “Modification”, but BofA sends them the Loan Modification “Turn Down” letter instead, and then starts up the foreclosure process, completely ignoring the newly enacted SB900 Foreclosure statutes enacted in California in 2013. These folks have letters from BofA informing them that their Loan Modification is being turned down because they did not send in some copies of some bank statements, which of course they did send in, etc, etc.
This article SHINES THE LIGHT of truth on why folks all over the nation are experiencing this stuff from BofA. Unfortunately, Bank of America is not the only lender steeped deep in this “corrupt” behavior.
Here are some quotes from this article by Paul Kiel ProPublica, June 14, 2013, 5:44 p.m.;
”Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.”
“Sometimes, homeowners were simply denied en masse in a procedure called a “blitz,” said William Wilson, Jr. , who worked as an underwriter and manager from 2010 until 2012. As part of the modification applications, homeowners were required to send in documents with their financial information. About twice a month, Wilson said, the bank ordered that all files with documentation 60 or more days old simply be denied. “During a blitz, a single team would decline between 600 and 1,500 modification files at a time,” he said in the sworn declaration. To justify the denials, employees produced fictitious reasons, for instance saying the homeowner had not sent in the required documents, when in actuality, they had.”
“Five of the former Bank of America employees stated that they were encouraged to mislead customers. “We were told to lie to customers and claim that Bank of America had not received documents it had requested,” said Simone Gordon , who worked at the bank from 2007 until early 2012 as a senior collector. “We were told that admitting that the Bank received documents ‘would open a can of worms,’” she said, since the bank was required to underwrite applications within 30 days of receiving documents and didn’t have adequate staff. Wilson said each underwriter commonly had 400 outstanding applications awaiting review.”
So maddening to see one of the Nation’s most “Trusted” financial institutions treating their homeonwer clients in this manner. Simply astounding really!