Bank of America rewarded staff for pushing people into foreclosure

Bank of America is facing a class-action suit from homeowners for allegedly attempting to force people into foreclosure, on purpose.  The suit alleges that Bank of America employees were actually rewarded for finding ways to push homeowners into foreclosure.

Pro Publica has done an extensive investigation of the problem, and it’s really quite amazing.  Apparently the controversy surrounding the administration’s HAMP problem whereby some homeowners could seek help getting their mortgages modified so that they could lower their monthly payments.

Homeowners were reportedly denied HAMP modifications en masse, while employees would create fictitious reasons for the denial.  Pro Publica also reports that Bank of America employees were allegedly told to lie to customers about not having received their documents, in an effort to stall movement on the modifications.

Sadly this isn’t the first time we’ve read some bad news about Bank of America.  They seem to be a recurring problem.  Here’s some of our past coverage of them, for example:

Matt Taibbi says Bank of America is “too crooked to fail.”  But can a bankster ever really be “too” crooked?

Follow me on Twitter: @aravosis | @americablog | @americabloggay | Facebook | Instagram | Google+ | LinkedIn. John Aravosis is the Executive Editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown; and has worked in the US Senate, World Bank, Children's Defense Fund, the United Nations Development Programme, and as a stringer for the Economist. He is a frequent TV pundit, having appeared on the O'Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy & Reliable Sources, among others. John lives in Washington, DC. .

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