BANKS EXPOSED...FRAUD

Exposed: Bank Fraud Against Struggling Homeowners

The US Treasury Department and the National Association of Realtors (Making Homes Affordable program) have been working closely together to bring an end to this seemingly never ending housing crash.

(….the end seems to have arrived. According the many reports.

With the end of the housing crash here questions still remain, why didn’t the President’s housing programs work to prevent MORE foreclosures?

Now, to the breaking news about bank fraud against struggling homeowners…

New stories are now being made public as to WHY the the Obama Administration’s housing programs have only had limited success…the primary reason? Hold your breath…wait for it….wait for it….yep, you guessed it…Bank Fraud. Information has leaked about whistleblower suits brought against the major lenders.

Here is what we know so far:

Gregory Mackler, a former contractor with the servicing outsourcer Urban Lending Solutions, filed the lawsuit as a whistleblower  in July. BofA contracted with companies like Urban for scanning documentation and working with borrowers seeking assistance through HAMP. Mackler claimed that BofA’s “business practices designed to intentionally prevent scores of eligible homeowners from becoming eligible or staying eligible for permanent HAMP modification.”

A BofA spokesman said the bank received no evidence the allegations in the Mackler suit were true, and it focused on improving borrower experience through HAMP.

“At Bank of America, HAMP is the first of numerous programs we extended to our customers in need of assistance, and it is central to our ongoing efforts to assist our customers who continue to struggle with economic factors, including unemployment and under employment,” the spokesman said.

Details of the suit and the claims against Bank Of America:

• BofA told borrowers and regulators that a loan mod file was “under review” while internally classifying the files as incomplete.
• BofA is being accused of assigning files to terminated or vacationing employees.
• The claim also accused BofA of sending payments to a “partial account” instead of crediting them to the loan, artificially inducing or prolonging a delinquent status.
• Bank of America attempted to persuade borrowers who did qualify for HAMP to take a BofA loan that came with much less favorable terms, a violation of the bank’s agreement with the government when it took the bailout money.
• Bank of America’s Countywide Financial subsidiaries defrauded the Federal Housing Administration by inflating appraisals used for government-insured home loans, as well as claims involving the Home Affordable Modification Program, a federal program to help American homeowners facing foreclosure.
• The bank and its agents routinely pretended to have lost homeowners’ documents, failed to credit payments during trial modifications and intentionally misled homeowners about their eligibility for the program, the complaint alleged.
• In February, a whistleblower complaint was unsealed from Kyle Lagow, a former employee in a Countrywide appraisal unit which detailed allegations of Countrywide’s “corrupt underwriting and appraisal process.”