Bank of America and HAMP

Bank of America told its Employees to Lie to Consumers who Applied for HAMP Modifications

For Immediate Release, June 18, 2013

 

Waters Calls for Investigation of Mortgage   Servicers Who
Benefitted by Misleading Borrowers Eligible   for HAMP

WASHINGTON,   D.C. – Congresswoman Maxine Waters, Ranking Member of the House Financial   Services Committee, sent a letter today   to Christy L. Romero, Special Inspector General for the Troubled Asset Relief   Program (SIGTARP), calling for an investigation of Bank of America or any   other mortgage servicer, who allegedly benefitted by misleading borrowers   eligible for the Home Affordable Modification Program (HAMP). 

 Ranking   Member Waters’ letter comes after an article in Bloomberg cited court documents in   which former loan employees stated that, Bank of America, the second-biggest   U.S. lender, “regularly drilled” employees, “to maximize fees for the bank by   fostering and extending delay of the HAMP modification process by any means.”

 The   letter notes that according to significant anecdotal evidence as well as a   number of academic studies that “foreclosure is often the most profitable end   result for a servicer that does not own the loan they are servicing.”

 “Bank   of America has received $992 million in Incentive Payments related to HAMP,   making them the second largest beneficiary of such payments.” Ranking Member   Waters writes. “While that figure pales in comparison to the other Troubled   Asset Relief Program (TARP) funds that the bank has benefited from, I do   think it represents a significant amount of assistance from taxpayer,” the   letter continues.

 Ranking   Member Waters also sent a letter to the Office of the Comptroller of the   Currency (OCC) and the Board of Governors of the Federal Reserve (Fed) asking   them to investigate how or whether these allegations against Bank of America   interact with the Independent Foreclosure Review settlement reached between   regulators and mortgage servicers in January 2013.

 

SUPPORTING DOCUMENTS

Declaration_of_Recorda_Simon_7-9-2011
Declaration_of_Bert_Sheeks_5-21-2012
Declaration_of_Simone_Gordon_May-23-2013
Beaufort County and MERS – Amended Summons Complaint
RM Waters letter to FED and OCC  re BofA ifr HAMP_2013_06_18)
BOA and HAMP

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