Email Us
The Trial Lawyer Magazine Logo
SUBSCRIBE

Bank of America Paid Bonuses to Foreclose: Lawsuit
Bank of America Paid Bonuses to Foreclose: Lawsuit

CNBC; June 17, 2013

Bank of America routinely denied qualified borrowers a chance to modify their loans to more affordable terms and paid cash bonuses to bank staffers for pushing homeowners into foreclosure, according to affidavits filed last week in a Massachusetts lawsuit.

"We were told to lie to customers," said Simone Gordon, who worked in the bank's loss mitigation department until February 2012. "Site leaders regularly told us that the more we delayed the HAMP [loan] modification process, the more fees Bank of America would collect."

In sworn testimony, six former employees describe what they saw behind the scenes of an often opaque process that has frustrated homeowners, their attorneys and housing counselors.

They describe systematic efforts to undermine the program by routinely denying loan modifications to qualified applicants, withholding reviews of completed applications, steering applicants to costlier "in-house" loans and paying bonuses to employees based on the number of new foreclosures they initiated.

To read the complete story, please click here: https://www.cnbc.com/id/100818866

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
The Trial Lawyer Magazine Logo
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram