Bank of America HAMP Modification Cases

In June of this year, a group of homeowners in Florida made claims against Bank of America (BOA), stating the bank “fraudulently delayed or destroyed their applications to modify the terms of their mortgages”, with a goal of taking the homes and re-selling them, making a nice profit in the process. These homeowners subsequently filed a Federal Complaint against BOA, claiming the banking giant perpetrated business practices which were not only unfair, but fraudulent as well.

It appears Bank of America has handled HAMP (the federal Home Affordable Modification Program) in a rather disastrous manner, allegedly processing just enough HAMP mortgage modifications to keep from arousing federal regulator suspicions while intentionally preventing a significant number of eligible homeowners from either becoming eligible or remaining eligible for HAMP benefits.

In other words, the bank never really intended to genuinely help eligible homeowners receive the benefits they were entitled to under HAMP. In the end, more than 79 percent of homeowners were denied HAMP benefits, costing taxpayers millions of dollars. On October 18, 2017, two plaintiffs in Pasco County, Florida filed a new lawsuit against BOA alleging “pervasive fraud” perpetrated by Bank of America against these homeowners seeking HAMP modifications.

The lawsuit claims that while BOA was given (from taxpayer monies) $45 billion, pursuant to the Troubled Asset Relief Program (TARP), as well as an additional guarantee of over $100 billion as “bailout” money, BOA has failed to honor its contract with the Federal government. That contract required BOA to help as many distressed homeowners as possible; however, the bank, using intentional, methodical practices, kept thousands of eligible homeowners from becoming or staying eligible for permanent HAMP modification so they could profit.

The current lawsuit claims that Bank of America:

  • Never properly equipped, hired or trained employees to address homeowner complaints
  • Never properly equipped, hired or trained employees to address regulatory inquiries
  • Developed a system which deliberately deceived and misled homeowners, resulting in homeowner ineligibility
  • Developed a system which deceived regulators
  • Outsourced HAMP services to Urban Lending Solutions
  • Along with Urban Lending Solutions, B of A implemented procedures which were diametrically opposed to the intent and purpose of HAMP
  • Conspired with Urban Lending Solutions to deliberately frustrate HAMP applicants
  • Hired temporary workers, giving these temporary workers and the Urban Lending Solutions workforce misleading titles
  • Used the above employees to solicit and direct homeowners to return documents which were then sent into what is known as a “document black hole.”
  • Directed the above employees to use tactics with homeowners such as claiming documents were missing information—or missing altogether—when, in fact they were complete and present
  • Directed the above employees to claim the homeowners’ files were “under review” when they were not
  • Directed the above employees to shred homeowner applications without ever being reviewed by Bank of America
  • Directed the above employees to delete thousands of applications per day to conceal the fact the HAMP applications had been received

Although BOA required their HAMP applicants to immediately provide financial documents, they would then allow those documents to sit for months without ever reviewing them, then when questioned by applicants, BOA employees were instructed to tell the homeowners their applications were incomplete when they were not, or “under review” when they were not. Ultimately, homeowners who were well-qualified for a HAMP modification were unfairly denied, ultimately losing their homes to foreclosure.

Further, BOA employees who met quotas for placing ten or more accounts into foreclosure within a specific month received monetary bonuses. Other employees were given gift cards for placing accounts into foreclosure.

Contact Our Philadelphia Consumer Protection Lawyers

If you or a loved one lost your home to foreclosure after being denied a BOA HAMP modification, it could be beneficial for you to speak to an experienced consumer attorney about your options.

To learn more about your legal options or to schedule a free consultation call the Philadelphia consumer protection lawyers at Golomb & Honik today at (215) 278-4449 or fill out our confidential contact form.

The national consumer protection lawyers at Golomb & Honik have successfully represented individuals in Philadelphia, Pennsylvania, New Jersey, and throughout the United States.

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