Big bank former employees blow whistle on HAMP cheats

by Kelli Rogers19 Jun 2013
Former employees of a major lender have claimed the bank routinely stalled the application process for the government’s Home Affordable Modification Program (HAMP).
Several former Bank of America employees in customer service positions offered declarations in the case – Kamie Kahlko v. Bank of America – suggesting the bank was more interested in delaying HAMP applications and eventually steering troubled borrowers into solutions or situations that were more profitable for the bank. 
The employee statements, filed in federal court in Boston as part of a multi-state class action, also pointed to the bank for encouraging the wrongful informing of homeowners about the status of documents already on file.
In several of the depositions, the former employees told of a servicer that routinely stalled and failed to timely process documents associated with HAMP loan modification requests.
One woman working as a customer service representative said she "was instructed to inform every homeowner who called in that their file was under review – even when the computer system showed that the file had not been accessed in months or when the homeowner had already been rejected for a loan modification."
BofA has not had a chance to respond in court records but is expected to soon, according to reports.


  • by Joanne | 6/19/2013 10:30:13 AM

    All I can say is, "DUH!" I am a realtor and have had dozens of clients stalled for 18 months or more being told "everything looks good, just waiting for final terms"... only to be rejected after losing 20% of their home's value during those 18 months, and then WAY underwater...B of A doesn't give a *@!%* about their customers. A class action suit is quite appropriate!!!

  • by John C Durham | 6/19/2013 10:33:01 AM

    After 250 calls with a TBTF bank B of A, I thought they were fooling around. Then, after we had been paying the "new mortgage" lower amount on time every time, they sent the Foreclosure warning.

    At this point, when they had ruined our credit and reported us late paying the "original" mortgage note, we had no where to turn for refinancing. I had no money for an attorney.

    So, naturally I took them to ($20) small claims. That got me to THE LEGAL department. Then I got my first call.

    Their New York City law firm told me I was in the wrong court. I told them I knew and was counting on them taking me into the "right" court. (I couldn't afford to). But, I told them that I knew that they didn't have the note or an assigned note and couldn't put the original all back together and the people they sold it to didn't get their paperwork either. If they would just please put my suit into the correct court, I would move the Court to Clear my Title. They didn't move the case anywhere...

    In 30 days, they had fixed up all three credit reports and our FICO scores back to where they were (175 points higher). Sixty days later I had a new lower interest mortgage and $2000 for my trouble and all fees and charges gone.

    Yeah, I sure smell a rat every time I see their Logo...

  • by Ronsflorida | 6/19/2013 10:36:17 AM

    I can believe that! I have tried to assist many Sellers with the HAMP program and the Short Sale Process with B of A only to get royally ran around in circles. But tenacity paid off in most cases as they can only deceive for so long.
    However; unfortunately sometimes it was too long for the Home Owners to hang in, which allowed the bank to foreclose and have the government/tax payer pay up the difference in the loss!


Is TILA-RESPA a good or bad thing long term?