"Bank Of America Fails To Hold Up Its End Of Foreclosure Fraud Settlement"
When it comes to getting borrowers through foreclosure prevention programs, Bank of America has lagged the other large mortgage servicers in the country for years. Initially, the bank blamed its borrowers for the lack of success, before eventually acknowledging that its mortgage modification processes are wholly inadequate.
According to a report today in Bloomberg News, things still haven’t changed:
Bank of America Corp., plagued by complaints about customer service in its mortgage unit, said it hasn’t yet refinanced a “significant number” of loans as part of the industry’s $25 billion settlement of foreclosure abuses.
The lender blamed the “time required to underwrite” loans for why it hasn’t completed many of its planned $1 billion in modifications, according to a filing earlier this month. By contrast, JPMorgan Chase & Co. (JPM) said last week it has already finished a “significant portion” of its $500 million program and Wells Fargo (WFC) & Co. said it expected to complete its $900 million requirement two years ahead of the 2015 deadline.
Under the terms of the $25 billion foreclosure fraud settlement that the nation’s five biggest banks cut with a coalition of attorneys generals and the federal government, the banks are required to provide a certain amount of relief to struggling homeowners. So far, Bank of America has failed to keep up.
Bank of America has managed to produce some spectacular messes when it comes to foreclosures, including foreclosing on a homeowner over an 80 cent typo. The bank also foreclosed on a home that no longer exists, incorrectly repossessed a pet parrot, and foreclosed on an elderly couple for paying their mortgage too early.
Meanwhile, one whistleblower alleged that the bank intentionally blocked homeowners from getting federal mortgage aid. But, remember, the bank will give you a modification if you promise to erase the mean things you said about it on Twitter.