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.


Should CFPB have more supervision over credit agencies?