Did Bank of America ever say “why” ..you’ve been turned down?

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Bank of America Lied To Home Owners, Former Workers Allege

By Michelle Conlin and Peter Rudegeair

June 14 (Reuters) – Six former Bank of America Corp employees have alleged that the bank deliberately denied eligible home owners loan modifications and lied to them about the status of their mortgage payments and documents.

The bank allegedly used these tactics to shepherd homeowners into foreclosure, as well as in-house loan modifications. Both yielded the bank more profits than the government-sponsored Home Affordable Modification Program, according to documents recently filed as part of a lawsuit in Massachusetts federal court.

The former employees, who worked at Bank of America centers throughout the United States, said the bank rewarded customer service representatives who foreclosed on homes with cash bonuses and gift cards to retail stores such as Target Corp and Bed Bath & Beyond Inc.

For example, an employee who placed 10 or more accounts into foreclosure a month could get a $500 bonus. At the same time, the bank punished those who did not make the numbers or objected to its tactics with discipline, including firing.

About twice a month, the bank cleaned out its HAMP backlog in an operation called “blitz,” where it declined thousands of loan modification requests just because the documents were more than 60 months old, the court documents say.

The testimony from the former employees also alleges the bank falsified information it gave the government, saying it had given out HAMP loan modifications when it had not.

Rick Simon, a Bank of America Home Loans spokesman, said the bank had successfully completed more modifications than any other servicer under HAMP.

“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,” Simon said in a email, adding the declarations were “rife with factual inaccuracies.”

Borrowers filed the civil case against Bank of America in 2010 and are now seeking class certification. The affidavits, dated June 7, are the latest accusations over the mishandling of mortgage modifications by some top U.S. banks.

Mortgage problems have dogged Bank of America since its disastrous purchase of Countrywide Financial in 2008. The bank paid $42 billion to settle credit crisis and mortgage-related litigation between 2010 and 2012, according to SNL Financial.

Bank of America and four other banks reached a $25 billion landmark settlement with regulators in 2012, following a scandal in late 2010 when it was revealed employees “robo signed” documents without verifying them as is required by law.

But problems have persisted. Since 2012, more than 18,000 homeowners have filed complaints about Bank of America with the Consumer Financial Protection Bureau, a new agency created to help protect consumers. Recently, the attorney generals of New York and Florida accused Bank of America of violating the terms of last year’s settlement.

The government created HAMP in 2009 in response to the foreclosure epidemic and to encourage banks to give homeowners loan modifications, allowing some borrowers to stay in their homes.

THE BLITZ

The court documents paint a picture of customer service operations where managers roamed the floor with headsets, able to listen into any call without warning. Service representatives were told to lie to homeowners, telling them their paperwork and payments had not been received, when in reality they had.

“This is exactly what’s been happening to homeowners for years,” said Danielle Kelley, a foreclosure defense lawyer in Florida. “No matter how many times they send in their paperwork, or how often they make their payments, they simply can’t get loan modifications. They wind up in foreclosure instead.”

The former employees said they were told to falsify electronic records and string homeowners along in foreclosure as long as possible. The problem was exacerbated because the bank did not have enough employees handling modifications, adding to the backlog of cases purged during the “blitz” operations.

Once a HAMP application was delayed or rejected, Bank of America would offer an in-house alternative, charging as high as 5 percent when the loan could have been modified for 2 percent under HAMP, according to an affidavit by William Wilson, who worked at the bank’s Charlotte, North Carolina office.

Wilson, who was a case management team manager, said he told his supervisors the practices were “ridiculous” and “immoral.” He said he was fired in August 2012.

Bank of America said it was not at liberty to discuss personnel matters.

Fight back with the right help-you can get the loan modification that you deserve!

The COMMON SENSE LOAN MODIFICATION GUIDE is available for residential homeowners.

*YOU DESERVE A LOWER INTEREST RATE
*A POSSIBLE PRINCIPLE REDUCTION (as per lender criteria)
*ALL MISSED LOAN PAYMENTS PLACED ON THE END OF YOUR TERM OR WAIVED!
* CREATE MORE CASH FLOW FOR YOUR HOUSEHOLD BUDGET(EVEN IF YOU ARE CURRENT)
*STOP FORECLOSURE (WHILE YOU NEGOTIATE WITH YOUR LENDER)
CALL 201-397-6941 or fill in our contact app.

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COMMON SENSE LOAN MODIFICATION GUIDE: Home Owner Edition by Gail Allen (price $375.00) You will submit your request for a loan modification to your lender with our assistance!

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CONTACT US AT: 201-397-6941

BUY COMMON SENSE GUIDE NOW! SECURE TRANSACTIONS with PAYPAL. Buy Now Take 6 months to pay…simply by using
Your PAY PAL ACCOUNT.
CONTACT US AT: 201-397-6941

We will show you how to arm your file with a forensic audit or loan analysis report. (reports are used by law firms and loan modification agencies.)

*What is a loan analysis report?

The report is a review of the mortgage related documents signed by the borrower on the day of closing. The report focuses on disclosure violations of federal law (TILA, RESPA, FDCPA, HOEPA, UCC, and others) and state laws (common law, fees, yield spreads, contract law, and others). The audit also looks for commissions violations, refund eligibility, misapplied payments, calculation errors, application fraud, and more. The audit maybe ordered directly from you..
Why pay a 3rd party when you can do it yourself.

Why use a loan analysis report?

The LDA Report is a tool used by lenders that determines what type of payment relief program you qualify for…
Remember there are many types of loan modification programs including payment suspension.
In this book you will learn about “NPV” Net Present Value this is an automated property evaluation model that reflects the true value of your property from the lender’s perspective. The report will give a pass or fail grade on your file.*fees are incurred for loan reports and all loan reports are optional.
Perhaps You Don’t Need an Expensive Law Firm or Agency to Get Your Loan Modification.By Modifying your Home Loan Directly With Your Lender You Can Save Thousands of Dollars!

*SOME REASONS WHY LOAN MODIFICATIONS ARE DECLINED:

Incomplete Applications
Missing information
Missing signatures
Missing proof of income for self-employed
P and L statements that are not justified
Income and Expense statements that are inaccurate.

The Guide includes FREE LOAN MODIFICATION ASSISTANCE WITH YOUR LENDER._______________________________________________________

Also, Home Owners are often unfamiliar with debt to income ratios and Guidelines that should be included in every Loan Modification Request Packet.

CALL 201-397-6941 or you may click the link below and a member of our staff will contact you within 24hrs.

*****FAST EVALUATIONS MAY FAX TO 1-866-896-3671

Documents Needed: recent pay stubs *hardship letter * mortgage statement(s)
DO IT YOURSELF!

Consumer Financial Protection Bureau the new 
watch dog.

2014 New Rules : Borrower dies can family assume or mitigate?

<em>The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

How many times have you heard about a family losing property due to the sickness and death of a love one? Banks are notorious for disregarding the legal interest of relatives – heirs and other
entities with title interest. What brought this to my attention is the fact that anyone living with a spouse or relative or partner owns the risk of being evicted by the lender upon the death of the borrower if their name(s) is not on the mortgage note.
In many mortgage agreements the rights of assumption is buried with the borrower, upon his death.
Lenders typically want to short sale the property and not pursue loan mitigation efforts with relatives or heirs as it becomes a vetting process -credit reports -income verification and background checks are time consuming. More important to the lender is the ability to write off all unpaid principle and interest payments and unmodified expenses-which can be carried over to a few tax years. The new rules agreed to by the CFPB appear to be a game changer and I know of at least 1 case in a NJ court that will be determined under these new guidelines.

http://www.consumerfinance.gov/regulatory-implementation

Home retention efforts after a borrower dies: In cases in which a borrower dies, the rules the CFPB issued in January require servicers to have policies and procedures in place to ensure that they promptly identify and communicate with family members, heirs, or other parties who have a legal interest in the home. Today’s bulletin provides examples of such servicer policies and procedures, including allowing for continued payment on the mortgage as well as evaluating the heir (or whomever the legal interest in the home passes to) for assumption of the mortgage and, if appropriate, for loss mitigation measures.
_______________________________________________________________________________________________
This all sounds good and I will keep an eye on the New Jersey test case as it unfolds in the
new year.

You can MODIFY YOUR HOME LOAN and Save $1,000s

You can MODIFY YOUR HOME LOAN and Save $1,000s

Did Your Lender turned Down Your Loan Modification Request?

Modify Your Home Loan Yourself! for $1475.00 In today’s market the average cost of a loan modification with a 3rd party is
2500-3500 dollars! Why not do it yourself and SAVE BIG TIME.

Not everyone needs an expensive loan modification agency or legal firm.

Unless you are filing  a law suit why not contact your bank yourself (they prefer to work with the homeowner).

Providing the proper documents are shown, a borrower can save thousands of dollars by

preparing and submitting the loan modification request packet directly to the lender.

Did Your Lender turned Down Your Loan Modification Request?
Let Us Be Your Loan Modification Back Office Group. What You Will Need:

  • Monthly mortgage statement
  • Information about other mortgages on your home, if applicable
  • Two most recent pay stubs for all household members contributing toward the mortgage payment
  • Last two years of tax returns
  • If self-employed, the most recent quarterly or year-to-date profit and loss statement
  • Documentation of income you receive from other sources (alimony, child support, social security, etc.)
  • Two most recent bank statements
  • A utility bill showing homeowner name and property address
  • Unemployment insurance letter, If applicable
  • Account balances and minimum monthly payments due on all of your credit cards
  • Information about your savings and other assets
  •  A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.)

CONTACT US AT: 201-397-6941

LOWER YOUR MORTGAGE PAYMENTS…NOW!

New mortgage program offers lower payments

Paul Davidson, USA TODAY 4:49 p.m. EDT March 27, 2013

SHARE 484 107 20 COMMENTMORE

The federal government on Wednesday announced a new loan modification program designed to help many more struggling homeowners than previous initiatives by requiring no documentation of income or financial hardship.

Under the Streamlined Modification Initiative, borrowers with loans backed by mortgage finance giants Fannie Mae and Freddie Mac must be at least 90 days delinquent on their mortgages and and make three trial payments on time. The initiative is being launched by the Federal Housing Finance Agency, which regulates Fannie and Freddie.

“This new option gives delinquent borrowers another path to avoid foreclosure,” says FHFA Acting Director Edward DeMarco.

 

Other programs to aid struggling homeowners, such as the Home Affordable Modification Program (HAMP), required borrowers to provide financial, income and hardship documentation. That created bureaucratic bottlenecks for many mortgage servicers, which limited the effectiveness of the programs.

The new initiative will begin July 1, 2013, and end Aug 1, 2015. By July 1, mortgage servicers must identify delinquent borrowers and send them a letter offering the modification.

To reduce their monthly payments, borrowers will get a new interest rate that’s equal to or below their current rates, based on the average of 30-year fixed mortgages, and the term will be extended to 40 years. Also, borrowers who owe more than their homes are worth will pay no interest on up to 30% of their unpaid balance. Borrowers, on average, are expected to reduce their monthly payments by 30%.

FHFA notes that in most cases, borrowers who provide proof of income and financial hardship can receive a more affordable monthly payment through the HAMP program.

To be eligible for the new program, homeowners must be 90 days to 24 months delinquent on their loans. They also must have a first-lien mortgage that’s at least 12 months old, and the amount they owe on their mortgages must be at least 80% of their home value.

FHFA says it has screening measures in place to ensure that the new program isn’t exploited by strategic defaulters — people who stop paying their loans to get a modification.

FHFA officials have not estimated the number of borrowers they expect to participate. But in a pilot program, 70% of those offered the opportunity took part in the trial, and 50% of the latter group received a permanent loan modification.

Ira Rheingold, executive director of the National Association of Consumer Advocates, says the program “is not a bad idea” because it addresses mortgage servicers’ paperwork snafus.

“It’s a solution for some people who just want a roof over their head and don’t want to lose their home,” he says.

But it will not be the best option for homeowners who could save more money through other programs that require documentation, Rheingold says.

More critically, he says, the program doesn’t lower the principal owed by borrowers to give them more equity in their homes. FHFA has been unwilling to do that.

About one in five homeowners owe more on their mortgages than their homes are worth. That’s been an impediment to the revival of the housing market and the economy.

“Unless they address principal reduction, it’s not good enough,” Rheingold says.

Fannie and Freddie helped 130,000 homeowners avoid foreclosure in the fourth quarter, pushing their total such successes last year to 540,000, according to FHFA. Since 2008, they have helped 2.7 million borrowers avoid foreclosure, including 1.3 million through loan modifications and the remainder through repayment and forbearance plans, short sales and other strategies.

 

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