The original content of Democracy Now! Headlines appears under the Creative
Commons BY-NC-ND 3.0 License (United States). For more, including their other
shows and media, visit www.democracynow.org.
June 19, 2013

Ex-Employees Say Bank of America Encouraged Foreclosures, Deceit 
-----------------------------------------------------------------


 
Former employees of the financial giant Bank of America are claiming
they were encouraged to push customers into foreclosure, including by
lying. In sworn statements added to a multi-state class action lawsuit
against Bank of America last week, the employees describe regularly
misleading homeowners seeking loan modifications and rejecting their
applications for phony reasons. The employees allege Bank of America
used the federal government's Home Affordable Modification Program, or
HAMP, to rake in as much federal money as possible before ultimately
foreclosing on the homeowners the program was meant to help. Simone
Gordon, a former former loan-level representative, said: "We were told
to lie to customers and claim that Bank of America had not received
documents it had requested." In return for their deceitful practices,
the employees say they were paid cash bonuses for the foreclosures they
helped cause. The claims were first reported by the website Pro Publica.
Bank of America says the former employees' statements are "rife with
factual inaccuracies" and has vowed to respond in court next month.

 

.