Bank of America Mortgage Modification Fraud
BOA Thwarts HAMP - Home Affordable Modification Program
During the economic downturn in the 2007-2008 time period, Congress decided to insure the continued viability of certain banks who were failing because of poor choices they had made. As part of the Troubled Asset Relief Program (TARP) program, Congress “lent” billions of taxpayer dollars to Bank of America (BOA) so that it would not fail. One of the conditions of receiving that money was that BOA would help its mortgage customers by participating in the Home Affordable Modification Program (HAMP).
What is HAMP?
The HAMP program was designed to give relief to homeowners who, because of the economic collapse, could no longer afford their mortgage payments. The program was supposed to provide a straightforward, efficient means of allowing homeowners to modify their mortgages so that they would be able to afford their payments and retain their homes.
While BOA participated in the HAMP program as a condition of accepting the TARP money, it did everything it could to thwart homeowners seeking a HAMP mortgage modification. While other banks’ customers were being approved on their HAMP modification applications almost 90% of the time, BOA customers were being approved at close to 30%.
While other banks’ customers were being approved on their HAMP modification applications almost 90% of the time, BOA customers were being approved at close to 30%
How did Bank of America prevent mortgage modifications?
What we have learned through former BOA employees and supervisors is that BOA engaged in a scheme of deceptions, misrepresentations and outright lies to keep its customers from getting HAMP mortgage modifications.
Among other things, BOA would:
- Repeatedly and intentionally lose customers modification applications
- Falsely claim that the applications were incomplete or stale
- Tell applicants that they could not qualify unless they were behind on their payments
- Charge its customers unnecessary fees
- Fail to apply customers’ payments to the proper accounts.
BOA did this because it figured out that it would make far more money through foreclosures or less favorable mortgage modification than through HAMP modifications.
As a result of its fraud, BOA has been forced to repay the United States government a billion dollars! What BOA has not done, however, is repay all of the customers it defrauded. That’s what our law firm is committed to do for our clients – getting them the justice they deserve.
What BOA has not done, however, is repay all of the customers it defrauded.
Did you have a Bank of America Mortgage?
If you had a mortgage prior to January 1, 2009, and applied to BOA for a mortgage modification between January 1, 2009, and December 31, 2016, you may have been a victim of BOA’s fraudulent scheme. Contact the consumer fraud attorneys at Aylstock, Witkin, Kreis & Overholtz today for more information about your legal rights and a free case evaluation. There is never a fee unless we recover for you.