Bank of America customers at a Bank of America machine.
The employee statements were filed late last week in federal court in Boston as part of a multi-state class action suit brought on behalf of homeowners who sought to avoid foreclosure through the government's Home Affordable Modification Program (HAMP) but say they had their cases botched by Bank of America.
In a statement, a Bank of America spokesman said that each of the former employees' statements is "rife with factual inaccuracies" and that the bank will respond more fully in court next month. He said that Bank of America had modified more loans than any other bank and continues to "demonstrate our commitment to assisting customers who are at risk of foreclosure."
Six of the former employees worked for the bank, while one worked for a contractor. They range from former managers to front-line employees, and all dealt with homeowners seeking to avoid foreclosure through the government's program.
When the Obama administration launched HAMP in 2009, Bank of America was by far the largest mortgage servicer in the program. It had twice as many loans eligible as the next largest bank. The former employees say that, in response to this crush of struggling homeowners, the bank often misled them and denied applications for bogus reasons.
Comment: Breathtaking, isn't it, how the psychopaths in the power think they can just fly this one under the radar without anyone noticing? "Nothing to see here folks, we're just meeting to publicly rubber-stamp our pre-arranged backroom deals to forge the US and EU into one state"...