2013-06-18fool.com

``Bank of America employees who helped clear the decks of pesky refinance documents were given cash and gift cards as bonuses. One former loan manager said that workers engaged in a bimonthly "blitz," whereby any applications older than 60 days were flatly denied. Often, managers tried to induce rejected customers into taking out a pricier bank loan, instead.

While some details are new, the charges are not. Two whistleblowers, one that worked at Countrywide, and another that worked for a lending unit under contract with B of A, have made similar allegations in the past. Nor has this behavior been limited to B of A and fellows Citigroup (NYSE: C ) , JMPorgan Chase (NYSE: JPM ) , Wells Fargo (NYSE: WFC ) , and Ally Financial, the signatories of the $25 billion National Mortgage Settlement. Last year, a former employee of Litton Loan Servicing told ProPublica how that company, working for Goldman Sachs (NYSE: GS ) , routinely engaged in "denial sweeps," in order to reduce the backlog of cases.''



Comments: Be the first to add a comment

add a comment | go to forum thread