Bank of America Employees Rewarded for Pushing Homeowners Toward Foreclosure

The affidavits of six former Bank of America employees in a Massachusetts lawsuit filed on behalf of Bank of America borrowers in several states tell an unsavory tale of systematic denials of HAMP modifications, repeated requests for information readily available in multiple systems as a delaying tactic and even bonuses and rewards for employees who tracked homeowners into foreclosure. Statements like the one below will come as no surprise to foreclosure defense attorneys, nor to the countless homeowners who struggled in good faith through this process only to ultimately lose their homes.

Naturally, Bank of America is denying the employees’ claims.

“Based on what I observed, Bank of America was trying to prevent as many homeowners as possible from obtaining permanent HAMP loan modifications while leading the public and the government to believe that it was making efforts to comply with HAMP,” said Theresa Terrelonge, a Bank of America collector until June 2010. “It was well known among managers and many employees that the overriding goal was to extend as few HAMP loan modifications to homeowners as possible.”

Max is quoted in the NBC news story on the affidavits, and Boot Camper Linda Tirelli contributed to the Bloomberg story.

Employees report that many modifications were denied en masse during something the bank called “the blitz,” and that they were periodically instructed to deny all applications more than 60 days old, although many of those files included all requested documentation.