IN RE BANK OF AMERICA HOME AFFORDABLE MODIFICATION PROGRAM (HAMP) CONTRACT LITIGATION

BANK OF AMERICA'S SENIOR LOAN COLLECTOR ADMITS TO LYING BECAUSE HE WAS TOLD TO LIE

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Attached is an affidavit of a senior loan collector for BOA that was filed in United States District Court for the District of Massachusetts under case number MDL 2193.

Simone Gordan stated the following under oath:

"Using the Bank of America computer systems I saw that hundreds of customers had made their required trial payments, sent the documents requested of them, but had not received permanent modifications. I also saw records showing that Bank of America employees have told people that documents had not been received when, in fact, the computer system showed that Bank of America had received the documents. This was consistent with the instructions my colleagues and I were given. We were told to lie to customers and claim that Bank of America had not received documents it had requested, and that it had not received trial payments (when in fact it had). We were told that admitting that the bank received documents would "open a can of worms" since the bank was required to underwrite a loan modification within 30 days of receiving those documents and it did not have sufficient underwriting staff to complete the underwriting in that time.... Site leaders regularly told us that the more we delayed the HAMP modification process, the more fees Bank of America would collect. We were regularly drilled that it was our job to maximize fees for the bank by fostering and extending the lay of the ... modification process by any means we could --- this included lying to customers. For example, we were instructed by our supervisors at Bank of America to delay modifications by telling homeowners who called in at their documents were "under review," when, in fact, there had been no review or any other work done on the file."

" 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 where discipline and often terminated without warning."

Bank of America did not merely lie to its customers. Bank of America makes a practice of lying to its own staff. While the use of a "nonperforming" loan are higher than the fees paid on a "performing" loan, the real reason for this outrageous behavior is that the banks are attempting to protect and maintain their receipt of outrageous sums of money that they have declared to be proprietary trading profits. The banks are mere intermediaries. They are not and never were principals or real parties in interest in any transaction between the homeowner and the investors who put up the money.

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Topics:  Bank of America, HAMP, Loan Modifications, Mortgages, Simone Gordon

Published In: Business Torts Updates, Civil Remedies Updates, Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

Reference Info:Federal, 1st Circuit, Massachusetts | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Barry Fagan, Law Offices of Barry S Fagan | Attorney Advertising

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