B of A allegedly abused the HAMP program which was created to help homeowners approaching foreclosure. Charges include that the bank threw out the paperwork of applicants who had fulfilled their end of the loan modification bargain, making the homeowner restart the modification process. Many people it is alleged fell into foreclosure who didn’t need to be there simply because the bank couldn’t get it’s act together. In many cases, as the attached article reports, it was worse than just incompetence.
Remember, Bank of America got bailed out by the taxpayers. The bank managed its books far worse than many of the homeowners facing foreclosure. Still mercy was in short supply at the bank.
Putting aside whether programs such as HAMP should have ever happened, and the fact that the housing crash was basically created by a too loose Fed, this is yet another example of a connected bank with all the right friends doing whatever it wanted while the average person with no political clout was left to swing in the breeze.
Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.