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?

CyberDisobedience on Substack | @aravosis | Facebook | Instagram | 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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38 Responses to “Bank of America rewarded staff for pushing people into foreclosure”

  1. Bill_Perdue says:

    If you’re claiming that I or the people at Black Agenda Report denied that Bush signed it then you’ll jut have to take reading lessons. RIF.

    After Democrats overwhelmingly voted for it, Obama supported it,administered it and then he and the FED gave $7.7 Trillion to the banksters. Democrats (and Republicans) are the enemy.

    Democrats should learn to read.

  2. Truth Whisperer says:

    I realize this is an delayed response to Mr. Perdue’s comments but DUDE…George W. actually signed the TARP Act – before he left office. Get your facts straight…………

  3. condew says:

    It’s not “Capitalism” that is the best system, it’s “regulated Capitalism”; and not “regulated” by Wall Street insiders looking to continue their career on Wall Street after a brief trip thru the swinging door.

  4. condew says:

    Credit Unions also have Federally insured deposits.

  5. condew says:

    I’m the one who keeps beating that drum; Holder needs to prosecute a few hundred bankers and brokers or be replaced with someone who will. Will Obama do that? no.

  6. condew says:

    Isn’t Bank of America the bank with the privilege of running a branch in every major U.S. military base? Should this continue?

    Tower Federal Credit Union also is present on most major bases, and Tower actually services all their own mortgages; they don’t write them up and sell them as fast as they can like most banks. So find a credit union you qualify to join, and check them out. Ask family about them, because often the only requirement for membership is that you qualify by where you live or work, or you have a family member who has already joined. For example, I sponsored my brother to join Tower, and he can now sponsor his family.

  7. karmanot says:

    Great! Same here….near Sebastopol.

  8. Bill_Perdue says:

    Obama and the thugs in Council of Economic Advisers helped predatory banks every step of the way and it led to massive numbers of foreclosures and and homelessness.

    From a radio commentary by Glen Ford of Black Agenda Report on 04 17 2012. “Treasury Secretary Geithner sat on the homeowners’ relief money for two years, because his boss wanted it that way.”

    The Obama administration’s indifference to the plight of foreclosed homeowners, and total subservience to the banks, is once again on public display. According to a report by the Special Inspector General of the TARP program, the administration has spent only a tiny fraction of the money it was allocated to help those most negatively impacted by the housing collapse. In two years, only a little over 30,000 households have been helped, at a cost of $217 million. That’s only 3 percent of the $7.6 billion TARP is authorized to spend through its Hardest Hit Fund.

    No wonder most people think TARP – the Troubled Asset Relief Fund – is only concerned with bailing out the banks. The Obama administration has treated it that way, even though Congress intended a portion of that money to help homeowners recover from the damage the banks had done.”

    Democrats and Republicans are the enemies of working people in equal measure. In order to change that we’re going to have to learn to walk like the Egyptians.

  9. emjayay says:

    Today the ads aren’t covering everything but all the comments are up above here in one big block in type about half the size of the real comments below.

  10. BillFromDover says:

    As Mr. Hannity would say: “Hey, don’t ya believe in forgiveness and redemption?”

    Oops, that was for Senator Vitter, my bad:…0.0…1c.1.17.hp.d7zB0v5hSNs

  11. Whitewitch says:

    I hope your wife is better and I hope you got the better of B and A in the end. Give your wife a hug for me.

  12. Whitewitch says:

    Thanks Karmanot – thankfully I am much better and living large in California!!!

  13. Naja pallida says:

    Where the hell is Eliot Spitzer when you need someone to put together a RICO case?

  14. karmanot says:

    It’s in our genes, we are Irish. :-)

  15. karmanot says:

    Sending you major good vibs!

  16. karmanot says:

    Yes, we support a small local bank that is still covered by Fed insurance.

  17. karmanot says:

    There is quite a brouhaha in SF over the parade. It’s president, a militant Obot, is taking her clue from Obozo and ruling like a tyrant.

  18. karmanot says:

    The Bank of America is a criminal enterprise. Chase and Citi are right there with them. The DOJ still has yet to file charges against forged montage documents that number in the hundreds of thousands. Read Mike Whitney’s current assessment of the ongoing mortgage fraud and the false housing recovery.

  19. BeccaM says:

    Let’s follow the trail of authority, shall we? Law enforcement — the police, prosecutors, and attorneys general — answer to whom? Oh yes, the politicians. And who makes or breaks politicians’ careers? Moneyed interests… namely the banking and investment behemoths which have created more than a quadrillion dollars of paper assets out of sheer imagination.

    Gee, only two degrees of separation, hardly even a worthy ‘Six Degrees of Kevin Bacon’ game.

    Oh okay — Banks = Tyra Banks last name. She was in “Mr. Woodcock” with Dan John Miller, who was in “My One and Only” with Kevin Bacon. Ha! Just five degrees.

  20. BeccaM says:

    As the late, great George Carlin said, “It’s a big club, and you ain’t in it.” And, “The real golden rule: The men with the gold make the rules.”

  21. BeccaM says:

    I’ve learned to multitask with my outrage.

  22. SkippyFlipjack says:

    Wow, we were in similar situation — not short sale but fruitless 8-month refi nightmare with BofA while wife was undergoing treatment for same. Awful, awful, awful company. Hope you’re recovered and doing well now.

  23. nicho says:

    And while we’re on the subject.

    Traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice.

    Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial. Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years.

    The behavior occurred daily in the spot foreign-exchange market and has been going on for at least a decade, affecting the value of funds and derivatives, the two traders said. The Financial Conduct Authority, Britain’s markets supervisor, is considering opening a probe into potential manipulation of the rates, according to a person briefed on the matter.

  24. nicho says:

    I had a friend who worked for BofA for most of his career. He was a vice president. When he retired, part of the deal is that they would provide health care. Then, one day a few years ago, they decided they “couldn’t afford it” any more. Ooops. Sorry, sucker. However, banker bonuses are sacred. They are promised, so they must be honored.

  25. Naja pallida says:

    I just wish it was only Bank of America, but I’d be willing to bet that if you looked into Chase and Citi, they’re doing the exact same things. I had my original mortgage through Chase, and they kept ‘accidentally’ under-estimating my escrow payments, thus ‘forcing’ them to increase my monthly payments every quarter. In less than two years my payments had gone up over 35%. They were essentially trying to push my payments above what they knew I could afford, so I would eventually start being unable to make payments – and then they could penalize me, or otherwise force me into foreclosure. All it did though was encourage me to jump to a local bank when they were offering refinancing with no closing costs, and I didn’t ever have a single problem after that. My payments to start with were lower, and actually went down most years, even though I had pretty much the exact same loan terms. The big banks, who now believe they are only investment banks, don’t care about regular customers. They make more money (at least on paper) off of forcing their clients to fail than they do from having someone pay their loan on time.

  26. karmanot says:

    Law enforcement? From the Supreme Court to the local Superior Court, all is commodity now. All is thoroughly corrupt.Ethics and justice are treated in Law Schools like 101 courses in cooking.

  27. karmanot says:

    BofA has been this way for decades. My mother hated the bank and she was a corporate officer. They kept ‘accidentally canceling the insurance’ of a close friend of mine, who was a high level employee of theirs and dying of HIV. They drove him to his death by worry and harassment. They should be destroyed, broken up and scattered to the winds.

  28. Indigo says:

    The disconnect between lawlessness in the banking business and law enforcement is amazing. How often must these accusations come forward before the government cracks down? What’s unbelievable here is not the story but the fact that the story is told repeatedly and yet law enforcement does nothing.

  29. BeccaM says:

    This is criminal fraud, and it hasn’t stopped because our government refuses to make it stop. The only thing that will make it stop is criminal prosecutions, jail time, and a break-up of this criminal banking enterprise known as BofA.

    Thing is, it’s not just them. They’re not the only bank still stealing people’s homes through criminally fraudulent foreclosures.

  30. BeccaM says:

    We did it two Decembers ago. Never looked back, quite happy with our credit union. They even have a local CU network no-fee ATM just a few miles down the road from us.

  31. nicho says:

    Why aren’t these people in jail?

    And those of you going to Pride festivities in San Francisco, remember that these are the people sponsoring Pride. Any mention of Bradley Manning, however, is taboo. Wouldn’t want to upset the corporations that have taken over Pride.

  32. mpeasee says:

    You know; this is a big deal for sure, and I am so glad that there is someone of conscious at BofA that realized that people need to know how they are fraudulent when it comes to their customers.

    But I still think the real story for today is the NSA leak and Obama visiting Europe. Also, why did Snowden leak to the Russians if they already knew we were spying on them? Know is talking about this today on any sites in the U.S.. You have to go to Germany, and Australia to find any news on this. The ABC in Australia said that reporters at the U.S. State Department briefing today did not ask one “single” question about Snowden or any of the current revelations. We have some spooky journalism here in the U.S.. In my opinion, think a Q&A script is being passed around to cool this controversy down, all of these so called “journalist” want entrance and acceptance into the halls of the corporate and government elite class.

  33. unclemike says:

    If you can take your business to a credit union, do it. I haven’t used a commercial bank since 2007, and never been happier.

  34. Snaggletooth says:

    A terrorist must have leaked papers from the inside… Damn traitors, ruining everything.

  35. keirmeister says:

    I’ve seen first-hand BoA’s behavior – even with small businesses and non-profits. Breaking free of that bank’s loan covenants and management was the best thing we could have done for ourselves.

  36. Whitewitch says:

    It is amazing to me that people would do such a job. You would not believe the horrible things the people from B of A said to me during our struggle to save our home, after just having a double mastectomy mind you. They were beyond cruel, in fact I almost hung myself in the basement of that home over the angst caused. I must have submitted “my papers” to them dozens and dozens of times, and would get that exact statement “We have not received your papers” or there is nothing on our fax machine. I was one of the lucky ones though, I was able to short-sell the house with the aid of a most wonderful real estate guy that listened to me wail over the calls from them, the missing paperwork, the statements of not getting this or that, having to resign and resign and resign closing documents. It was truly a living nightmare. I hope they all rot in the hell of their own creation.

  37. samizdat says:

    Too crooked? HA! That’s like saying corporations make too much profit. There is no such thing as moderation in capitalistic enterprise. Whatever it takes, whomever you have to kill, that’s what drives corporations.

  38. LanceThruster says:

    To BofA with whom I’ve had an account since high school – I have had it with you!

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