Banks Sitting on Files, Some Foreclosures Halted
It Just Keeps Hitting the Fan
According to statements filed in the Boston federal court last week, Bank of America rewarded employees for foreclosing on homeowners. This comes as no surprise, last week we discussed how some banks incentivized foreclosure review for their “independent” auditors. Now details are coming out about some of the ways that B of A operated. For many homeowners this is just upsetting confirmation of what they have suspected, the banks are playing dirty.
“We were regularly drilled that it was our job to maximize fees for the bank by fostering and extending delay of the HAMP modification process by any means we could,” said Simone Gordon, a former loss-mitigation specialist. Homeowners were often informed that their modification paperwork was under review as a stalling tactic so that a foreclosure could be processed. The practice of running a modification and a foreclosure in parallel is called dual tracking. Under the California Homeowner Bill of Rights and the National Mortgage Settlement dual tracking is now illegal. Homeowners in California are starting to pursue the banks for their part in wrongfully foreclosing.
Last month Citigroup, JPMorgan Chase, and Wells Fargo halted their foreclosures after the Office of the Comptroller of the Currency released guidance. Meanwhile, Bank of America was confident in its processes’ compliance and continued on, business as usual. Yet another complication in the continually evolving legal requirements banks must now consider. As the federal government continues to update its policies we may see banks pausing processing for many homeowners.
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