BofA facing lawsuit for incentivizing foreclosures

You won't find this on any of those nifty little brochures:

Theresa Terrelonge, another former employee, said loan officers were given restaurant gift cards and $25 cash awards for denying loan applications. The incentives moved workers to reject applicants improperly, Terrelonge said May 15 in a statement. “I witnessed employees and managers change and falsify information in the systems of record, and remove documents from homeowners’ files to make the account appear ineligible for a loan modification,” said Terrelonge, a loan servicing representative. This allowed managers to meet quotas for closed cases, she said.

Bank of America instructed employees to delay applications and mislead customers “as part of a deliberate practice of stringing homeowners along,” lawyers said June 7 in a filing.

I doubt these defrauded homeowners will get any sympathy from the GOP. If they couldn't afford the house, they shouldn't have signed the papers. And besides, let the market fix this. If the bank treats people badly, they can go somewhere else! Unfortunately, it doesn't matter who you get your initial mortgage from; the way they sell these loans back and forth to each other, you don't know who's going to be holding your note. Which is a perfect example of how an average person would fare in a totally free market. Like a leaf on the wind.

Comments

Perhaps prison time?

Those responsible for this activity should be prosecuted. There should be public hearings. Those folks should be barred from ever working in a similar capacity, like crooked brokers are etc. What will happen? Probably nothing.

The fact this is being handled in civil court

demonstrates there is a huge breakdown in our criminal justice system. Either crimes have been committed, or there aren't sufficient statutes to protect people from fraud and abuse.