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Bank of America whistle-blowers bombshell: We were told to lie (David Dayen,
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2013 Jun 19, 11:57am 773 views 2 comments
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Obama says they did nothing wrong. (Romney would have as well). That is why I voted for William K. Black for president.
MisdemeanorRebel
2013 Jun 21, 3:36am
Great article, thanks Jahn.
The government’s Home Affordable Modification Program (HAMP), which gave banks cash incentives to modify loans under certain standards, was supposed to streamline the process and help up to 4 million struggling homeowners (to date, active permanent modifications number about 870,000). In reality, Bank of America used it as a tool, say these former employees, to squeeze as much money as possible out of struggling borrowers before eventually foreclosing on them. Borrowers were supposed to make three trial payments before the loan modification became permanent; in actuality, many borrowers would make payments for a year or more, only to find themselves rejected for a permanent modification, and then owing the difference between the trial modification and their original payment. Former Treasury Secretary Timothy Geithner famously described HAMP as a means to “foam the runway†for the banks, spreading out foreclosures so banks could more readily absorb them.
That's exactly what it was for, to fleece to middle class for the banks, who are represented by BOTH parties.
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.
http://www.salon.com/2013/06/18/bank_of_america_whistleblowers_bombshell_we_were_told_to_lie/
#housing