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Arizona Nevada Sue Bank of America For Fraud

18 Dec

Seems that Bank of America has been defrauding customers (what else is new?) in a whole new way. The current scam involves getting delinquent customers to continue to pay with promises that their payments will forestall foreclosure…

And then foreclosing anyway.

B of A even did “Press Releases” –

Bank of America Helps 125,000 Homeowners With “Making Home Affordable” Loan Modifications

Starting November 1st, Bank of America’s will have surpassed its goal of providing 125,000 trial loan modifications through the government’s Home Affordable Modification Program (HAMP).  These modifications, part of the Making Home Affordable Program, aim to resolve loan issues by offering an incentive for banks to accept modifications to a loans terms, rather than simply foreclosing on the home.

This is the same bank which for years ran the scam of cascading customer checking accounts to maximize the overdraft penalties, and who set up a late payment structure on their credit cards which taxed consumers $35 a month regardless of when they made the payment.

So it really isn’t a surprise that this is what they really did…

Two States Sue Bank of America Over Mortgages

The attorneys general of Arizona and Nevada on Friday filed a lawsuit against Bank of America, accusing it of engaging in “widespread fraud” by misleading customers with “false promises” about their eligibility for modifications on their home mortgages.

In withering complaints filed in state courts in both states, the attorneys general accused Bank of America of assuring customers that they would not be foreclosed upon while they were seeking loan modifications, only to proceed with foreclosures anyway; of falsely telling customers that they must be in default to obtain a modification; of promising that the modifications would be made permanent if they completed a trial period, only to renege on the deal; and of conjuring up bogus reasons for denying modifications.

“Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious,” Catherine Cortez Masto, the attorney general of Nevada said in a statement.

Many Nevada homeowners continued “to make mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds.”

The lawsuit comes as top prosecutors nationwide are investigating whether the paperwork that banks used to support foreclosure cases often was egregiously sloppy, sometimes relying on robo-signers — employees who signed hundreds of documents a day — to sign sworn court documents.

Tom Miller, Iowa’s attorney general who is heading the multistate investigation into foreclosure fraud allegations, said the two states’ lawsuits would not dilute his inquiry. “It is clear that attorneys general in Arizona and Nevada believe that it is in their two states’ best interests to pursue coordinated civil cases against Bank of America,” he said in a statement.

A Bank of America spokesman, Dan Frahm, said bank officials were disappointed that the lawsuits were filed “at this time,” given the bank’s cooperation with the multistate investigation.

Mr. Frahm disputed the allegations in the lawsuit, saying the bank was committed to making sure no property was foreclosed until the customer had a chance to modify the loan or, if ineligible for a modification, to pursue another solution.

He said the attorneys general didn’t acknowledge the many improvements the bank had made, like providing a single point of contact for customers who have started the modification process and increasing staff to support “homeownership retention initiatives.”

Arizona and Nevada are among the states hardest hit by the housing downturn, and the state attorneys general said their lawsuits were prompted by hundreds of complaints by consumers who sought modifications of their mortgages.

The complaints in the lawsuit in many ways echoed problems encountered by homeowners nationwide who have tried with little luck to obtain mortgage modifications from banks, often through a federal program set up for that purpose. Thousands of homeowners complain that banks repeatedly lose their documents, fail to return calls or foreclose when a homeowner believes he or she is still negotiating a modification.

Indeed, according to the lawsuits, Bank of America’s efforts were the most anemic of the big banks and were not confined to the Western states but rather “reflect a pervasive nationwide pattern and practice of conduct.” The lawsuit noted that Bank of America ranked last in “virtually every homeowner experience metric” monitored in a monthly report on the federal home loan modification program.

Ms. Masto of Nevada said her office’s findings were confirmed by interviews with consumers, former employees, third parties and documents. Former employees said that Bank of America’s modification staff was “chaotic, understaffed and not oriented to customers,” according to a news release. One former employee said, “The main purpose of the training is to teach us how to get customers off the phone in less than 10 minutes.”

Another employee said, “When checking on a borrower’s status, I often found that the modification request had not been dealt with or was so old that the request had become inactive. Yet, I was instructed to inform borrowers that they were ‘active and in status.’ One time I complained to a supervisor that I felt I always was lying to borrowers.”

 

 
4 Comments

Posted by on December 18, 2010 in Great American Rip-Off

 

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4 responses to “Arizona Nevada Sue Bank of America For Fraud

  1. leslie

    December 18, 2010 at 11:08 PM

    On Wednesday, December 15, 2010 members of Grassroots Assembly for Mortgage Fraud Victims, LLC conducted a Mortgage Fraud Summit at the Doubletree Hotel in Ontario with Rhema Economic Research and Development, a nonprofit Corporation.

    The Event was a success! This was their first Event and based upon the outcome and urgent need of Homeowners in Foreclosure, they will be conducting others in the year 2011 with prominent speakers who are in contact with them now ready to speak at their next summit.

    The LATEST NEWS for California is that Goldman Sachs is the underwriter of the Debt of California….You can outright see the conflicts here. Especially California Judges allowing these Servicers to Foreclose on Homes which is a direct financial benefit to these Servicers. (i.e. Goldman Sachs who owns 100% of the Servicing Company Litton Loan Servicing and is the underwriter for the majority of homes that were securitized and serviced by other banks) – GOLDMAN SACHS IS UNDER THE GUISE OF GOVERNOR, NOW WE ARE GOING AFTER CALIFORNIA…..!

    You may want to check out the blog – Major Civil case brewing against Goldman Sachs:

    Visit This Blog at http://bushnellcomplaint.blogspot.com/2010/04/comments-are-welcomed.html#links .

    Self Help Interactive Educational Loan Doc Tool Coming Soon In January 2011….
    http://www.checktheloandocs.com

    EDUCATIONAL WORKSHOPS PROVIDED BY GRASSROOTS to Help you understand and educate to uncover Fraud in your Foreclosure and Loan Modification Docs.
    https://fdaaccount.box.net/shared/3d8o7tnl0i

    Reviews pertaining to the event…

    Write up from Nomi Prins:
    http://www.nomiprins.com/thoughts/

    Write up about the event from the Huffington Post….
    Mortgage Fraud Summit Reveals Both Systemic Fraud and FBI’s Seeming Blind Eye
    http://www.huffingtonpost.com/suzanne-okeeffe/mortgage-fraud-summit-rev_b_798501.html
    To combat mortgage and foreclosure fraud, we first need to understand the nature of the fraud. There are the small-potato schemes — the loan modification-aid scams, or the scams of fraudsters busting into foreclosed properties and renting them out. Yes, people get burned this way, but going after these frauds is like prosecuting the drug dealer on the corner, if you will.
    The true nature of the fraud — the kingpin level, so to speak — is found in the current nature and structure of the financial / mortgage / foreclosure system itself. And that level of investigation is what the FBI carefully tip-toed around discussing at Wednesday’s Mortgage Fraud Summit that took place in Ontario, Ca.
    read more: http://www.huffingtonpost.com/suzanne-okeeffe/mortgage-fraud-summit-rev_b_798501.html

    Like

     
  2. nanakwame

    December 20, 2010 at 10:01 AM

    BOA is one of our worst. They have had employees doing scams for many years now.

    Local development to matter how it is done must be done, with prudence and foresight. This I am all by myself must end, yesterday.

    Like

     
    • btx3

      December 20, 2010 at 10:15 AM

      B of A is the Enron of banking, Nana.

      Like

       
  3. nanakwame

    December 20, 2010 at 12:53 PM

    Yes B of A will fall, and will not be saved

    Like

     

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