Bank of America Under the Microscope for Possible HAMP Violations

Bank of America could soon be in some serious hot water due to claims made by former employees.

A statement made by Simone Gordon, a former Bank of America loss-mitigation specialist who departed the bank in 2012, said the bank improperly disqualified some applicants to the Home Affordable Modification Program or HAMP (source). Gordon’s statement also said she and her coworkers falsified documents and were instructed to delay loan assistance by asking for paperwork they’d already received.

For doing so, Gordon stated that Bank of America rewarded their employees with cash bonuses, specifically $500 each time they put at least 10 customers into foreclosure.

The bank is already in the center of controversy over what has transpired since they took over Countrywide Financial Corp. in 2008. They have paid out more than $45 billion in settlements, and many other homeowners are now lining up to sue (a class-action suit), claiming they were not given permanent loan modifications despite making payments to trial programs. A law firm is currently talking to a group of more than 1,000 customers who say they followed the bank’s guidelines but were ultimately denied permanent loan modifications. Bank of America denies these allegations.

Another former Bank of America employee, Theresa Terrelonge, said loan officers were offered restaurant gift cards and $25 case rewards for improperly rejecting loan claims and denying them. Terrelonge says she personally witnessed coworkers and management staff falsifying records – and even remove documentation from files to make the customer appear ineligible.

For their part, Bank of America disputes these accusations, saying they’ve helped more customers than anyone under the HAMP program, and they’ll respond to the charges when they file their response to the latest lawsuit.