Why Is Bank of America Delaying Your Modification?
Nationalmortgageinvestigation.com
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Congressional Oversight Pannel Blasts HAMP - 12/14/10: click here
House Committee Testimony regarding HAMP - 03/02/11 : PDF Click here
House Committee Testimony regarding HAMP - 03/29/11 : Video click here
In regards to above HAMP Testimony on 03/29/11 it stated:
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“Anecdotal evidence of servicer failures, of course, has been well chronicled. From the repeated loss borrower paperwork, to blatant failure to follow program standards, to unnecessary delays that severely harm borrowers while benefitting servicers themselves, stories of servicer negligence and misconduct are legion, and servicer’ conflicts of interest in administering HAMP — they too often have financial interests that don’t align with those of either borrowers or investors — have been described by SIGTARP and others. Treasury’s tepid reaction to date to servicer non-compliance with the requirements of HAMP and its related programs appears to be driven by the fear that forcing servicers to comply with their contractual obligations will drive them away from HAMP. Treasury recently told COP that since participation by the servicers is purely voluntary, “our abilities to enforce specific performance are extremely limited” and “aggressive enforcement [is] difficult.” The same fear of the service withdrawal was offered by Treasury in response to SIGTARP’s recommendation that Treasury reconsider its decision to make its Principal Reduction Alternative program entirely voluntary, and Treasury continues to operate an appeals system that leaves the ultimate decision of whether to approve or deny a modification squarely with the servicer. TARP’s oversight bodies –SIGTARP…….”
I found the above very interesting, but more importantly, I found the fact that they said that the servicers had ”ultimate decision of whether to approve or deny a modification..” even more interesting. Now correct me if I am wrong, but I could have sworn that Bank of Lying To America has been telling us that it was “up to the investors.”
It is things like this that make you go “hmmmm.” click here
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HAMP Is The Biggest Bait And Switch Scam In U.S. History! BofA Might Be Just An Evil Puppet.
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By John Wright
What’s Really Going on?
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“The bottom line is Freddie & Fannie are the Godfathers of the HAMP program and the mortgage industry.”
September 11, 2010-Think of Fannie & Freddie as the wicked witch from the Wizard of Oz. Bank of Abusing America is more like one of the evil monkeys the wicked witch dispatched to do her evil bidding. This is the story I would like to tell you about, but instead of following the yellow brick road, we are just going to follow the money. Oh how deep the rabbit hole goes!
For those of you who do not know who Fannie Mae & Freddie Mac is, they are the Federal National Mortgage Association (FNMA) (OTCBB: FNMA), commonly known as Fannie Mae, was set up as a stockholder-owned corporation chartered by Congress in 1968 as agovernment-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. In retrospect, they are the government, but here are some other facts who Fannie Mae and Freddie Mac are about:
- GSE means Freddie Mac, Fannie Mae
- Hamp program was designed by Freddie, Fannie, and Treasury
- This info on this link is from Freddie, Fannie, to the banks.
- Freddie, Fannie was taken over by Gov. Sept. 2008 ( Freddie, Fannie means Government)
- It says repeatedly that Hamp is for Non-GSE loans or documents say it is not for full recourse loans, which is just about all of them.
- GSE loans, I think are 90-95% of mortgage loans.
- That means only 5-10% can be modified under HAMP. (Hence all the problems)
- In most cases, your bank that you think owns your loan, is actually a Servicer and they send the money on to GSE,s (gov.)who actually own the loan.
- HAMP program I believe was a scam, to help them foreclose on GSE loans while you were in a trial period for a Mod. that you were never eligible for in the first place, because it was a GSE loan or a full recourse loan. What an easy way to foreclose while you are in the house and paying them money. GSE’s have total control of the HAMP program, not the banks, the banks are getting their arms twisted by the GSE’s (Gov.) to do exactly what the are told.
- The few that do get modified are actually owned (very few) by the banks them-self.
Now that you have this info, Here is the link, you should find most of your answers here. Remember this link is for the SERVICIERS (Banks) not us.
https://www.hmpadmin.com/portal/prog…/servicer.html
So maybe President Ronald Reagan’s words ring true when he said: “The nine most terrifying words in the English language are: ‘I’m from the government and I’m here to help.” Basically, it was when the government decided to get involved that it all started to go wrong. The whole story sounds like nothing short of the government injecting itself into the private sector to influence the market. Who is ultimately responsible for the mortgage crisis? The government! The government created an environment with security back loans that would cause feeding frenzy among the piggy banks. The Real-estate business has always been like a game of musical chairs, but this time when the music stopped playing, the fat piggy banks were already sitting down.
The following information was based on facts that I received in an email:
From recent article: Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords.
This will show the Journey through HAMP HELL and that approx. 95% of the loans were not eligible in the first place due to tricky wording. Yes, this is the Big American Bait and Switch orchestrated byFannie & Freddie and using your tax money to do it! All Americans, African Americans, Whites, and Hispanics are all being deceived and defrauded once they enter the HAMP program.
Just a few of the key points are: Edward Pinto pointed out in a recent hearing that Fannie, Freddie and Genie Mae own, guarantee or control 95% of loans in U.S. right now. That leaves only 5% for the private banks own or control. Is this a coincidence that approx. 95% of modifications are being turned down?
Key timeline:
Aug. 2008- Fannie & Freddie restructure its attorney foreclosure process
Sept. 2008- Fannie & Freddie taken over (receivership) by Gov.
Oct. 2008- TARP approved
Nov. 2008- TARP changed, found different way to recover Toxic assets (HAMP)
Dec. 2008- Streamline Mod. Program started, had been in the works for little while and would have worked to help homeowners and preserve home values.
Jan. 2009- Streamline Mod. program replaced with HAMP
Feb. 2009- HAMP announced- foreclosures have skyrocketed ever since.
Key documents:
PSA agreements (Servicing Agreements)
Servicing Announcements (lots of these almost weekly)
Servicer Participation Agreements (For HAMP program)
Fannie Mae-August 6th 2008 New Foreclosure & Bankruptcy Attorney Network (this shows how Fannie are in total control of foreclosures, not the banks) excerpts from document below:
- Plaintiff, Caroline Herron, files this action against her former employer, Fannie Mae, Fannie Mae officials, for terminating her because she raised criticisms about how Fannie Mae was (1) implementing its role to assist the Department of the Treasury (“Treasury”) in modifications of home mortgage loans, (2) engaging in a gross waste of public funds, and (3) violating its contract with Treasury. If Fannie Mae is considered a private employer, Ms. Herronhas claims for wrongful termination in violation of public policy and tortuous interference with prospectivebusinessadvantage. If, in the alternative, Fannie Mae is considered to be a government employer, Ms. Herron has a claim regarding the violation of her constitutional rights under the First Amendment.
Article written Dec. 17, 2008 before HAMP showing that it would not work for Modifications before it was even announced and it was all about MBSs and PSAs. (Mandatory Retained and http://foreclosuredefensenationwide.com/? Servicer-Retained Referrals)
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23 Comments
how do i contact the united law group?
i need to file against bofa
thank you!
I am also loosing my house to Bank Of America..
I have read a lot of people with problems with B of A. I to have had many problems all the ones everybody has talked about and maybe a few more. Its been since Dec 09 that my Loan Mod was started with no answer as of today. I am now in the process of calling every week and responding to any website that will listen. I have e-mailed 3 different news stations but no one seems to be interested in the story. Whats next?
Hi Mike:
We all here at piggybankblog.com know exactly how you feel. We are all in the same boat and that is why we are joining together as once voice. Have you wrote the BofA CEO yet?
I am John Wright and I AM FIGHTING BACK!
John Wright
piggybankblog.com
I started modification with BAC in January, 2010. While it started out rocky it got so far out of this world that I still cannot believe what they have done to me.
I was applying for a mod under the ‘Imminent Default Program’. This means you are distressed financially, meet the initial requirements for a mod but are current with your payments.
They advised me I would need them to create an escrow for the program to cover taxes & insurance. That was ok with me. BUT they did not tell me that an escrow would immediately be created. I paid my taxes & insurance. They paid the bill too. I refunded the money to BAC. To satisfy the escrow, they charged me $.01. No problem there. In June, they arbitrarily raised my monthly mortgage payment to an amount THEY thought I should be paying into escrow. I refused to pay it because I was barely making my current amount due. They told me that although I was getting default calls and penalties that my account will become clean once my modification was approved. September came & I paid my 6 month insurance premium again. They paid a full year so my insurance returned the excess payment to me which I forwarded to BAC. One week later, I get a letter of disqualification from the program. I obtained from my insurance the extra 6 months payment from BAC and forwarded it to them so the slate was clean with the escrow.
Now that I am removed from the process, I called them that I didn’t want any further help (yeah, right) from them. Just take my account back to the way it was in January before all the hell started for me. They agreed to do that.
Yesterday, October 2, 2010, I received a letter from BAC entitled “NOTICE OF INTENT TO ACCELERATE’ on a past due amount almost $2,000, to be paid my October 27 or they will start foreclosure on my home.
The straw that broke the camel’s back! I wrote my story in a letter, sent a copy to every address in BAC I dealt with during the application process and Bryan Moynihan-BAC CEO and finally to Washington DC addressed to the Hotline Office of the Special Inspector General for Troubled Asset Relief Program.
When I started the application process, my credit score was 780. BAC reported my so called default payment during the application process and I have been reduced to 660.
If I get a response from any of the 5 addressee’s, I’ll return to this site and post that I have succeeded in righting the wrongs and exploitation I received.
Unless someone knows of another way out of this nightmare? Technically, BAC owes me $.04!
I’ve owned my home since 2002 and have never been late until now. I’ve been in Bank Of America’s loan modification process since July 2010. During the mod process, my financial situation worsened and I missed one mortgage payment. However, when I called the bank after I made payments, the bank told me that because I didn’t pay the late charges, they cannot do anything with the payments that I made and they are just “sitting in the system”. Last week I received a certified letter from BAC Home Loans ““NOTICE OF INTENT TO ACCELERATE”. After speaking with Bank Of America customer service representatives several times about the letter, I have reason to be EXTREMELY concerned.
First Call:
The first representative told me that the letter was sent because the Home Retention Department doesn’t “share” information to the Mortgage Collection Department and I should just disregard the letter since I’m in the Loan Mod process. But something didn’t seem right so I decided to call again the following day.
Second Call:
The second representative told me that the letter was “just protocol” and not to be upset. “Just wait for my trial payment plan/modification.” That person told me that I was approved by the underwriters and that I’m in the next phase being the trial payment offer / investor review “so I’m almost there”.
Third Call:
But I couldn’t relax, something didn’t seem right so I called again the following day but this time I decided to go to the Home Retention Department where I spoke with “Eric” this time. He told me immediately that “Yes, if you don’t pay what you owe us by Oct 17th, your house will be put up for sale at an auction. It could happen on Oct 18 or on the 20th or another date. But they will review your account and schedule the on-sale date.” When I told him that I was waiting on a loan modification, he replied ” It doesn’t matter to us that you are in a loan modification process – you are late and in default and per the agreement, it is the bank’s right to sell your house. Now can you make a payment today or can you tell me the date that you will be making a payment.”
I was totally mortified and still am. This is the no doubt the worse time of my life. I don’t know which way to turn or who to believe at Bank Of America. My financial troubles began when Bank of America changed its overdraft policy. My overdraft used to be a safety net. Suddenly automatic withdrawals to my creditors were being denied left and right and each time Bank of America charged me a whopping $35 each time which made matters much worst only this time, I was getting charged the $35 but my payments were being denied.
Who can I contact at this point? Who can I contact to help me with Bank Of America? Any bank oversight agency? If I lose my house, I don’t know what I’ll do.
Help!
Sincerely,
I’m not replying to anyone in particular, but I was in the Making Home Affordable plan for 11 months, made all my trial payments, then was denied. Bank Of America sent me a court date and a letter of intent to foreclose and sell the house from under me (in legal terms of course), while I thought I was in the Making Homes Affordable programs, as my statements indicated. They deceived me! I kept the documents, can I sue their asses!
It seems that we the home owner should all be suing Fannie & Freddie and the US Treasury Department …not the banks…or all three! Very eye opening article!!!!!!!!!!!
John, I am not accusing you of purposely misleading people, as I too am battling with BOA but I must point out one big error which kind of changes some things.
Are suggesting that HAMP is only for non GSE’s? If so you are wrong. I have just finished researching it.
If I am not mistaken the link you have above which leads to the HAMP servicer’s guideline handbook is strictly written for non-GSE loans so it wouldn’t have information about GSE loans.
If I am wrong…and I pray that I am not, please forgive me because when I first read the stuff above I was ready to explode. If I am mistaken please feel free to correct the errors of my comment.
I will check back later.
Bill
Hi Bill:
No problem Bill. I always like a good debate.
Give me 24 hours and I will put something together for you and show you.
Respectfully,
John Wright
My mom applied for the MHA in June 2009. Today she is still dealing with this nightmare with Bank Of America.
She also received a “Notice Of Intent To Accelerate” and back in July 2010 and she wasn’t even behind and was current on her monthly mortgage payments. The letter said her loan was in serious default and if she didn’t come up with $1808.58 on or by July 30th, 2010, foreclosure proceedings would take place.
I learned that Bank Of America misplaced two mortgage payments and placed them in as credits towards the loan instead of payments. Which of course led to false late fees. I spent hours and hours talking to these ass clowns, I when I brought up the false late fees to a rep I even read the letter I received from an Aundria from BOA which stated what happened with those two payments, that BOA placed them as credits and the rep asked “what’s a credit?” and “that doesn’t make sense.”
Again I spent hours and hours on the phone trying to find out about the “Notice Of Intent To Accelerate” and where BOA came up with the $1808.58 figure which almost triples my mom’s monthly mortgage payment and nobody could give me an answer.
Finally after demanding to talk to a manager or supervisor, a Larry Lorenzo, supervisor for the Customer Advocacy department got on the phone and simply told me the letter was sent in error, it was a mistake, that my mom should just forget about it.
No explanation as to where they got the $1808.58 figure from, no apology, not even a hard copy of admission of this error as I had requested for proof later.
During this time my mom received letters and calls from REDC Default Solutions about her alleged loan default and brought up “In Deed Of Lieu” as an option to avoid foreclosure. She also received “In Deed Of Lieu” paperwork from BOA…Again, this was while she was paying her monthly mortgage payments while in limbo waiting for a loan modification.
Still waiting for the negotiator to call to find out my mom’s MHA application status and about the false late fees accumulated. Working on a RESPA letter and ready to give them more hell next week.
This all wreaks of extortion to me. It seemed as if BOA was either hoping my mom would some how come up with the mythical $1808.58 or sign her house away!!!!
we are modifcation hell too! since jan 2010 never late not past due until the triail payments , now we are over 10,000 past due, no decline or accepence into the modification, our credit is distroyed, so we cant get a loan to pay off the past due amount , because of the trail payments , I was told this week have a back up plan because we will take your home, no one gets aprooved for the modification, this is their way of making people past due so they can take their homes, help !!!
John, it’s been 48 hours, how are you coming along on your research?
Whether your incorrect information that only non-GSE’s qualify for the HAMP program, your sole proof being a link to a non-GSE HAMP handbook, which falsely implies that only 5% or non-GSE loans will be modified was an honest mistake or a misleading mistake to anger people, I hope you do the right thing and correct your mistake.
As I’ve said, I to am battling with BOA, who in my opinion are blood sucking vampires, but we have enough lies and disinformation coming from the likes of BOA, we don’t need to go down that same path as them in our fight with them.
Hi Bill:
Yes, I am in the process of preparing it, as it is done but I am thinking that it is too much to post in the comment section. So I am thinking about creating a blog page with your question on, as well as my answers. I am going to try and do this right now Bill. I am sorry for the delay, as I have a million things coming at me at once with my companies I own.
Not a problem Bill. There is so much information out there that it is totally possible that I could have received the wrong info, as I depend on my board for a lot of the information.
I will have it up tonight
Okay Bill, I have finished it. I put it up really fast so let me know if a document was attached out of place. You can find the answer to you question on my blog that I created to answer your question here:
http://www.piggybankblog.com/2009/11/08/bloggers-question-gses/
John…Have you noticed that the site you linked which showed the Servicers online handbook from Fannie Mae is no longer available? https://www.hmpadmin.com/portal/prog…/servicer.html which is just above the sentence “So maybe President Ronald Reagan was right”
Click on the link and you get the following message:
“The requested object does not exist on this server. The link you followed is either outdated, inaccurate, or temporarily unavailable.”
I bring this up because after bitching to Bank Of America about the almost two years of trying to get a modification one of their rep’s told me the investor (Fannie) is holding up the process and I should talk to them.
So I called Fannie and a rep told me that Fannie wouldn’t even see anything until the borrower is in the three month trial period….more lies from BOA?
I than told the Fannie rep about the servicers handbook (above) and how it stated that the HAMP agreement does not apply to GSE loans, and the rep said that was not true. That only GSE loans qualify…He asked me which site I found this information and when I went to the link you provided…I received the message above.
Very interesting! Either it was wrong info from which you thought meant this was a scam by the Treasury and GSE’s or they are covering their asses??????
I myself attempt to get a Home Affordable Modification from June of 2009 and to present. I paid every month this pre-modification payment just to be stalled and lied to by Bank of America employees one excusedafter another.
Ten they have tried to take all my home equity from me stating I owes for 25 yars on a 30 years loan when I purschased my home in 1/311996 and has not missed any payments.
I have wrote them until I can not write to them anymore. I filed cmplaints with HUD, OCC and the US Treasury Department and nothing has happen.
Linda Johnson
My question is this and anyone going through this may be able to answer with some insight…
If a Home Affordable Modification was put in back in September and payments haven’t been current since July 2010 what would be the best thing to do now?
Should we wait to see if the modification comes through, try to catch up on payments or try to go somewhere else and get a completely different mortgage? After reading all of this, it seems like the Modification program is a way of BOA taking away a home.
I haven’t heard anything from them since October and that is only when I track them down and today I put another phone call out to them but the person that is supposed to be handling our account of course was not available and “will get back with us”.
I feel like we are just waiting for some really bad news to come our way as many have already received and the modification was supposed to be a way of helping people.
What would be the good in just taking the homes back from people in the first place? What gain is that? Why would banks want to foreclose on so many people? Why wouldn’t they want homeowners to be able to get back to being able to make regular payments, on time?
It sounds like the Gregory Lemke way might work for you. Here is the link to the page that I created for him to asist people like you : http://www.piggybankblog.com/2010/09/03/bofa-legal-adviceit-worked-for-gregory-lemke/
My name is John Wright AND I AM FIGHTING BACK !
John Wright
piggybankblog.com
Hello John, I attempted to acquire a loan mod last year from BOA. I sent them the necessary paper work over 5 times and they kept asking for more. Never received a call, letter, help etc. so I knew they were just stalling and gave up
I read your site last week with the suggestion of writing the CEO and explanning the situation. I wrote a stinging email and asked him if he condoned and approved the current tacits being used. This was on Friday. Today I received a call , in fact two calls from BOA from a very nice and courteous lady and she went out of her way to help me. She will asign a case Mgr. to me by Friday of this week and also call me back She gave me her private line so I could call her.
I used the headings you suggested in the letter and received a reply and contact in two business days
Just thought you might like to know your suggestion worked.
;} I used Universal Lending to execute a modification (FTC closed their operations for fraud), then had to do it on my own. I had a friend who offered to finance the home, but after three months Bank of America still hadn’t responded to multiple requests for payoff. We contacted the attorney in Monroe Louisiana who was handling the forclosure and was told they couldn’t get an answer either. They finally sent me a modification just days before my home was up for auction. I signed them and sent them back FedEX. Two days later I recieved another offer. I called and told them I had sent the package off, and was told that it contained an adjustable rate and they could get it waived.. It also added back interest of over $18,000 to the balance due of $118,000 making the total due of over $145,000. Since I was caught between the old rock and hardplace, I told them to go ahead with it and was put on a trial period. I fulfilled the period, (supposedly 3 months, but took over 6 months) and was sent a letter saying I qualify for the modification. The letter also in multiple places said they were preparing Agreement papers and as soon as I got them get them back in the time period stated. The wording actually was “to accept this offer, you will need to sign and return a Modification Agreement that includes the terms and conditions of the permanent modification. We are in the process of preparing your Agreement and will be sending it to you soon. Please be on the lookout for a package in the mail and return the Agreement to us by the requested date so we may finalize you loan modification”. I did not recieve them within 4 weeks so I called on and was told if not recieved by June 23, 2010 call back. I waited til June 23 and still no packet. I called and was assured it was “APPROVED” but they were running behind pretty badly. They said call back if not recieved by July 23, 2010. No packet so I called on July 25,2010. Again I was assured it was “APPROVED” and not to worry, it was taking several months to get all the paperwork out. I was told to just continue making the modification agreement payments as I had been doing. I was disabled in Janruary of 2010 and put on weekly disability payments. In Oct 2010 I was put on monthly payments paid on the 21st day of the month so I called and talked to John on the 5th day of December at 12:53 CDT. I explained the situation and he said don’t worry, it would not change anything. He asked if I could afford the modification payments where they were and I told him yes. He also told me I could use direct pay by my bank at that time. He also assured me I was approved for modification and would see my paper work soon. On February 23, 2011 I recieved a call from BOA. I returned the call and was told I had been turned down. They transfered me to the DESIREE TEAM. I talked with a supervisor named Julie Nye. She said my payment was $1184.96. I explained that I had been approved each of my statements showed to continue the $983.32 Payments. She asked me to fax all that to her and she would post it to my folder. I also asked her about the turn down, and she said it did not reference that in my account. She said it showed I was still under “REVIEW”. I explained the approval letter and she asked that it be sent also. Then last night, February 23, 2010 I recieved another call from another dept of BOA. I was told I had been turned down and I would be sent another packet. She also said not to be surprised if I recieved a forclosure notice and not to ignore them. She said they were sending me another package to see what other program I qualify for. So eleven months after I was sent an approval letter , and over 18 months since the process started they are now wanting to steal my home. I am now on permanent disability and would probably not qualify for any program. Where do I go from here? I have already went to the Federal Trade Commission and Louisiana’s AG
I started my Mod with country wide in 2008 before they were bought. Then came DofA had no problem till this year I was informed in Feb. they needed docs. to complete the process. I and a third party was checking on this every week. March sale date was moved to April they said they had all info they needed and it was in under writting. Then in April they would not move the sale date We was told to call 21 days b for and we did then told call in 7 days and we did then told call the friday b for and we did and told call mon. the day of sale and was told not to worry they were asking to much for the house and it would not sale, call back in a 48 hours.
I and my third party called daily we were told by many people not to worry mod is still in process and the sale can be resinded. What a night mare, was never done and got 3 day notice. So I hired a great attorney in L.A.
These people have no desire to help people at all.
I have the same problem we started with NACA in 10/31/2009 still in waiting with BoA. what a BS