Banking is a predatory industry.
Marketwatch quotes under-oath statements from bank employees who said they had to to lie to customers so the bank could foreclose on their properties.
Marketwatch’s Al Lewis: …”The accusations are so outrageous, it’s best to read them in the former employee’s own words — which they have submitted under penalty of perjury.” Here.
Quotes from Bank of America employees:
• “Although I was called a “Home Retention Specialist,” my job was to collect as much money as possible from homeowners,” said Recorda Simon, who worked at Bank of America’s call center in Fort Worth, Texas, from August 2010 to January 2011.
• “We were told to lie to customers and claim that Bank of America had not received documents it had requested, and that it had not received trial payments” when in fact it had, said Simone Gordon, who worked at Bank of America from July 2007 to February 2012. “A collector who placed 10 or more accounts into foreclosure in a given month received a $500 bonus. Bank of America also gave employees gift cards to retail stores as rewards for placing accounts into foreclosure.”
• “I saw records regarding hundreds of homeowners that Bank of America treated dishonestly,” said Erika Brown, who worked at Bank of America from June 2009 through June 2010. “The homeowners were eligible for loan modifications under HAMP, sent back all the required documents, and made all their required payments. Bank of America nevertheless damaged their credit ratings by reporting them delinquent, tacked on additional charges to their loans, increased the amounts it considered as being owed and often referred these homeowners to foreclosure.”
• “I told my supervisors these practices were ridiculous and immoral,” said William E. Wilson Jr., a team manager for Bank of America from June 2010 through August 2012, in Charlotte, N.C. “We were instructed to delay and then push homeowners to accept an internal refinance so that Bank of America would profit. Once an applicant was finally rejected after a long delay, the bank would offer them an in-house alternative. Bank of America would charge a higher interest rate, ranging up to 5%, as compared to 2% if the loan had been modified under HAMP.”
• “The numbers Bank of America were reporting to the government and to the public were simply not true,” said Steven Cupples, an underwriter who worked at Bank of America until 2012. “Employees who challenged … the ethics of Bank of America’s practice for any reason were fired.”
• “Bank of America was trying to prevent as many homeowners as possible from obtaining permanent HAMP loan modifications, while leading the public and the government to believe that it was making efforts to comply with HAMP,” said Theresa Terralonge, who worked for Bank of America from June 2009 to June 2010.