Bank of America Rewards Employees Lying and Pushing Foreclosure

by on Bank of America Foreclosures

A Bank of America Agency

After the foreclosure settlement agreements and the hot water that lenders have been in over the last few years due to the real estate market crash, surely, lenders are now engaging in ethical actions and all their wrongful deeds have been uncovered. Or so you would think…

Despite the conclusion of the foreclosure settlement agreements and resulting compensation checks, Bank of America cannot seem to stay out of the spotlight. Unfortunately for them, the spotlight is magnifying their unethical practices, which is bad PR to say the least.

We recently highlighted the fact that Bank of America was headed to court to face off against AIG and is being sued by New York as a result of failing to comply with foreclosure settlement agreement terms.

However, even with these two problems, the bank is yet again in the spotlight for their questionable actions. Specifically, Bank of America is being accused of encouraging employees to lie and rewarding them for pushing foreclosure.

Bank of America Rewards Employees for Foreclosures

Bank of America has apparently been rewarding their employees for meeting foreclosure quotas, rewarding them with everything from gift cards to bonuses. When a bank is rewarding these types of practices, employees often find themselves engaging in actions to help increase their chances of receiving these rewards. However, the homeowners are the ones who are suffering in this situation.

Specifically, employees were paid a $500 bonus if they completed at least 10 foreclosures per month. Furthermore, these employees were told to force homeowners into foreclosures and clearly were rewarded personally for pushing foreclosures.

As a result, many requests for a loan modification (under the Home Affordable Modification Program or HAMP) have been rejected even if they met the qualification requirements.

Bank of America Encourages Employees to Lie

As part of this process, Bank of America is encouraging employees to lie by telling homeowners that their HAMP modifications are “under review” when they are not being reviewed by the bank. Furthermore, employees delayed processing HAMP applications – a delay that Bank of America strongly encouraged.

Employees even claim that they were told to tell homeowners that they never received documents required for loan modification, even if the documents were received by the bank. In short, Bank of America required employees to flat out lie to homeowners – all to meet a quota.

All of this information, which was revealed last week in court in Boston, shows that Bank of America was engaging in unethical actions and having their employees lie to homeowners all in an effort to avoid loan modification and increase foreclosure.

Clearly, the lender was failing to help homeowners avoid foreclosure despite the requirements to help encourage loan modification and other alternatives to foreclosure.

In conclusion, Bank of America is up to no good yet again and their unethical actions and cruel intentions are being brought to the spotlight again. How long will these lenders – like Bank of America – continue to engage in unethical actions? As long as they continue to get away with it and only get a slap on the wrist, these actions will more than likely continue – all trying to meet the agenda of the lenders and failing to meet the needs of the homeowners.

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