Former BoA Employees File Complaint Alleging Fraudulent Home Loan Practices

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Six former Bank of America employees allege that their former employer engaged in an active campaign to deny eligible home owners loan modifications, lied about the status of mortgage payments and documents, and offered employees bonuses for foreclosing on homes.

The former employees each worked at Bank of America centers across the United States, and have made several allegations against their former employer that suggest that the company used illegal and unethical means to prevent their customers from taking advantage of the government-sponsored Home Affordable Modification Program (HAMP). The complaint alleges that Bank of America policies denied access to the program by ignoring or lying about customer paperwork in an attempt to either foreclose on homes or steer customers towards higher interest rates through the bank’s own refinancing program, that employees who complied with the policies were rewarded with retail gift cards, and that employees who refused to comply with the policies or questioned the ethics behind them where disciplined and sometimes fired.

  

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The legal complaint further alleges that Bank of America officials falsified information about HAMP loans when reporting to the government, saying that it had given out the loan modifications when it had not. The court documents also say that bank managers were able to listen into any phone call without warning, and encouraged service representatives to lie about the status of filed documents and received payments in a manner that frequently led to home foreclosure.

One of the former employees behind the complaint claimed that he told supervisors that the practices were ridiculous and immoral, and was subsequently fired.

A spokesperson for Bank of America spoke with Reuters, responding to the complaint. “We continue to demonstrate our commitment to assisting customers who are at risk of foreclosure and, at best, these attorneys are painting a false picture of the bank’s practices and the dedication of our employees.” The spokesperson said that the complaint was filled with inaccuracies.

Since 2012, 18,000 homeowners have filed complaints about Bank of America with the Consumer Financial Protection Bureau, and the attorney generals of New York and Florida have accused Bank of America of violating the terms of a $25 billion settlement in 2012 regarding unverified documents being signed by bank employees.