Bank of America Whistleblower’s Taking The Nation By Storm! Check Out The Actual Seven Bank of America Whistleblower Declarations!

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Check Out The Actual Seven B of A Whistleblower Declarations

 

Piggybankblog posted on 06/19/13

Cross linked with salon.com

Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.

The government’s Home Affordable Modification Program (HAMP), which gave banks cash incentives to modify loans under certain standards, was supposed to streamline the process and help up to 4 million struggling homeowners (to date, active permanent modifications number about 870,000). In reality, Bank of America used it as a tool, say these former employees, to squeeze as much money as possible out of struggling borrowers before eventually foreclosing on them. Borrowers were supposed to make three trial payments before the loan modification became permanent; in actuality, many borrowers would make payments for a year or more, only to find themselves rejected for a permanent modification, and then owing the difference between the trial modification and their original payment. Former Treasury Secretary Timothy Geithner famously described HAMP as a means to “foam the runway” for the banks, spreading out foreclosures so banks could more readily absorb them.

These Bank of America employees offer the first glimpse into how they pulled it off. Employees, many of whom allege they were given no basic training on how to even use HAMP, were instructed to tell borrowers that documents were incomplete or missing when they were not, or that the file was “under review” when it hadn’t been accessed in months. Former loan-level representative Simone Gordon says flat-out in her affidavit that “we were told to lie to customers” about the receipt of documents and trial payments. She added that the bank would hold financial documents borrowers submitted for review for at least 30 days. “Once thirty days passed, Bank of America would consider many of these documents to be ‘stale’ and the homeowner would have to re-apply for a modification,” Gordon writes. Theresa Terrelonge, another ex-employee, said that the company would consistently tell homeowners to resubmit information, restarting the clock on the HAMP process.

Worse than this, Bank of America would simply throw out documents on a consistent basis. Former case management supervisor William Wilson alleged that, during bimonthly sessions called the “blitz,” case managers and underwriters would simply deny any file with financial documents that were more than 60 days old. “During a blitz, a single team would decline between 600 and 1,500 modification files at a time,” Wilson wrote. “I personally reviewed hundreds of files in which the computer systems showed that the homeowner had fulfilled a Trial Period Plan and was entitled to a permanent loan modification, but was nevertheless declined for a permanent modification during a blitz.” Employees were then instructed to make up a reason for the denial to submit to the Treasury Department, which monitored the program. Others say that bank employees falsified records in the computer system and removed documents from homeowner files to make it look like the borrower did not qualify for a permanent modification.

Senior managers provided carrots and sticks for employees to lie to customers and push them into foreclosure. Simone Gordon described meetings where managers created quotas for lower-level employees, and a bonus system for reaching those quotas. Employees “who placed ten or more accounts into foreclosure in a given month received a $500 bonus,” Gordon wrote. “Bank of America also gave employees gift cards to retail stores like Target or Bed Bath and Beyond as rewards for placing accounts into foreclosure.” Employees were closely monitored, and those who didn’t meet quotas, or who dared to give borrowers accurate information, were fired, as was anyone who “questioned the ethics … of declining loan modifications for false and fraudulent reasons,” according to William Wilson.

Bank of America characterized the affidavits as “rife with factual inaccuracies.” But they match complaints from borrowers having to resubmit documents multiple times, and getting denied for permanent modifications despite making all trial payments. And these statements come from all over the country from ex-employees without a relationship to one another. It did not result from one “rogue” bank branch.

Simply put, Bank of America didn’t want to hire enough staff to handle the crush of loan modification requests, and used these delaying tactics as a shortcut. They also pushed people into foreclosure to collect additional fees from them. And after rejecting borrowers for HAMP modifications, they would offer an in-house modification with a higher interest rate. This was all about profit maximization. “We were regularly drilled that it was our job to maximize fees for the Bank by fostering and extending delay of the HAMP modification process by any means we could,” wrote Simone Gordon in her affidavit.

It is a testament to the corruption of the federal regulatory and law enforcement apparatus that we’re only hearing evidence from inside Bank of America now, in a civil class-action lawsuit from wronged homeowners, when the behavior was so rampant for years. For example, the Treasury Department, charged with specific oversight for HAMP, didn’t sanction a single bank for failing to follow program guidelines for three years, and certainly did not uncover any of this criminal conduct. Steven Cupples, a former underwriter at Bank of America, explained in his statement how the bank falsified records to Treasury to make it look like they granted more modifications. But Treasury never investigated. Meanwhile, the Justice Department joined with state Attorneys General and other federal regulators to essentially bless this conduct in a series of weak settlements that incorporated other bank crimes as well, like “robo-signing” and submitting false documents to courts.

These affidavits, however, should return law enforcement to the case. William Wilson, the case management supervisor, alleges in his statement that this “ridiculous and immoral” conduct continued through August of 2012, when he was eventually fired for speaking up. That means Bank of America persisted with these activities for at least six months AFTER the main, $25 billion settlement to which they were a party. So state and federal regulators could sue Bank of America over this new criminal conduct, which post-dates the actions for which they released liability under the main settlement. Attorneys general in New York and Florida have accused Bank of America of violating the terms of the settlement, but they could simply open new cases about these new deceptive practices.

They would have no shortage of evidence, in addition to the sworn affidavits. According to Theresa Terrelonge, most loan-level representatives conducted their business through email; in fact, various email communications have already been submitted under seal in the Massachusetts civil case. State Attorneys General or US Attorneys would have subpoena power to gather many more emails.

And they would have very specific targets: the ex-employees listed specific executives by name who authorized and directed the fraudulent process. “The delay and rejection programs were methodically carried out under the overall direction of Patrick Kerry, a Vice President who oversaw the entire eastern region’s loan modification process,” wrote William Wilson. Other executives mentioned by name include John Berens, Patricia Feltch and Rebecca Mairone (now at JPMorgan Chase, and already named in a separate financial fraud case). These are senior executives who, if this alleged conduct is true, should face criminal liability.

Bank accountability activists have already seized on the revelations. “This is not surprising, but absolutely sickening,” said Peggy Mears, organizer for the Home Defenders League. “Maybe finally our courts and elected officials will stand with communities over Wall Street and prosecute, and then lock up, these criminals.”

Sadly, it’s hard to raise hopes of that happening. Past experience shows that our top regulatory and law enforcement officials are primarily interested in covering for Wall Street’s crimes. These well-sourced allegations amount to an accusation of Bank of America stealing thousands of homes, and lying to the government about it. Homeowners who did everything asked of them were nevertheless pushed into foreclosure, all to fortify profits on Wall Street. There’s a clear path to punish Bank of America for this conduct. If it doesn’t result in prosecutions, it will once again confirm the sorry excuse for justice we have in America.

Piggybakblog adds the 7 declarations from the 7 Whistleblowers below.

Exhibit 1 Declaration of William E. Wison Jr.

Exhibit 2 Declaration of Simone Gordon

Exhibit  3 Declaration of Theresa Terrelonge

Exhibit  4 Declaration of Steven Cupples

Exhibit  5 Declaration of Recorda Simon

Exhibit 6 Declaration of Erika Brown 

Exhibit 7 Declaration of Bert Sheeks

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Exhibit 8 and 9 Declaration of Piggybankblog below:

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18 Comments

  1. TC says:

    And nothing will happen to the execs you watch. I wish we could get some One West Bank employees to blow the whistle

  2. TC says:

    And nothing will happen to the execs you watch. I wish we could get some One West Bank employees to blow the whistle

  3. Carrie says:

    OMG John
    This is what happened to my family and I

    we tried for over 2 1/2 years for a HAMP loan mod
    only to have the BofA CSR tell us paperwork was not recieved then we would fed ex them or USPS certified mail them & even fax them to then call and call and get told that the paperwork had expired past 60 days and we had to resubmit all new updated documents

    then BofA would tell us that our file was under review or that we were being reviewed for all possible programs
    and the delays and denials kept piling on

    so here we are today with a mortgage that is over 50% severely underwater as BofA pushed us into a corner and added 100k to an already underwater principal mortgage to bury us severely underwater extending our loan to 40 +years adding 108k to the end
    BofA claimed late fees, bank fees, appraisal fees, processing fees, etc etc

    This is unacceptable
    bank of america and fannie mae do not really wnat to help any family save their homes.

  4. Carrie says:

    OMG John
    This is what happened to my family and I

    we tried for over 2 1/2 years for a HAMP loan mod
    only to have the BofA CSR tell us paperwork was not recieved then we would fed ex them or USPS certified mail them & even fax them to then call and call and get told that the paperwork had expired past 60 days and we had to resubmit all new updated documents

    then BofA would tell us that our file was under review or that we were being reviewed for all possible programs
    and the delays and denials kept piling on

    so here we are today with a mortgage that is over 50% severely underwater as BofA pushed us into a corner and added 100k to an already underwater principal mortgage to bury us severely underwater extending our loan to 40 +years adding 108k to the end
    BofA claimed late fees, bank fees, appraisal fees, processing fees, etc etc

    This is unacceptable
    bank of america and fannie mae do not really wnat to help any family save their homes.

  5. Allen Keller says:

    Whats new?-i no faith in our government and the current Prez needs to take action…if u can stick -it to them-by all means do it

  6. Allen Keller says:

    Whats new?-i no faith in our government and the current Prez needs to take action…if u can stick -it to them-by all means do it

  7. Dorrie says:

    This is exactly word for word what happen to me,
    Now since BofA sold me in August 2012 I am trying to get
    A loan modification from Select Portfolio Servicing. I was in a In home loan modification and I paid the 3 months,
    But now that was only temporary, now I must pay
    Back payments to try to get a permanent mortgage.
    I also was not able to be included in the lawsuit of
    bofA. Only if you lost your home?
    Keep fighting for the people who are taken advantage
    Of by these corrupt pieces of shit. They have made my life
    Miserable for the past 3years. Karma Karma

  8. Dorrie says:

    This is exactly word for word what happen to me,
    Now since BofA sold me in August 2012 I am trying to get
    A loan modification from Select Portfolio Servicing. I was in a In home loan modification and I paid the 3 months,
    But now that was only temporary, now I must pay
    Back payments to try to get a permanent mortgage.
    I also was not able to be included in the lawsuit of
    bofA. Only if you lost your home?
    Keep fighting for the people who are taken advantage
    Of by these corrupt pieces of shit. They have made my life
    Miserable for the past 3years. Karma Karma

  9. Allen Keller says:

    Sad prez we have-bad bad bank-street justice!

  10. Allen Keller says:

    Sad prez we have-bad bad bank-street justice!

  11. AL says:

    I don’t disagree at all with your position vis a vis BOA’s commission of fraud upon it’s mortgage customers facing foreclosure.
    However, I would like to alert you and your readers to the OPPOSITE situation whereby they FAIL to protect the integrity of neighborhoods by REFUSING TO TAKE OTHERWISE LEGITIMATE FORECLOSURE ACTION THEREBY PROTECTING NEIGHBORING PROPERTY OWNERS AND THEIR OWN SHAREHOLDERS!
    The following is the essence of an email (names/locale removed) sent to BOA “customer relations” folks identified in this wiki post:
    http://wiki.answers.com/Q/What_is_the_phone_number_of_Bank_of_America_corporate_offices_in_Charlotte_NC
    “The reason for this email is to express the consummate frustration that we have been experiencing for one year now as a result of your bank’s consistent refusal to proceed with an entirely warranted and justified foreclosure of a home. We just completed a call to the law firm representing your bank after noticing that this property suddenly disappeared from their list of properties to be auctioned.

    Noticing that these debtors had returned to this property in July 2012, after leaving it a year earlier, we called both the local police, searched county records, and obtained whatever information available regarding this property’s status.

    It is clear that the buyers of this home fell delinquent in their mortgage payments sometime in 2010 and, in 2011, left the home completely. Having owned our home for 12 years as a part-time resident who visits often, we noted the increasingly poor condition of this home and its unkempt yard. Clearly, these are residents who cannot, or will not, respect either their legal/financial obligations or the integrity of the neighboring properties.

    These residents returned in the heat of the summer of 2012 without ensuring that the premises had running water or air conditioning. If not for our efforts with local and state officials where we advocated that they cite this home as uninhabitable, the returning residents would not have paid an outstanding water bill and provided running water to the home. They were using pool water, which had not been filtered/treated for at least a year, to flush their toilets. Because of a serious mosquito problem in the area, the Town had to treat the community with pesticides. We were concerned that the untreated pool was a potential health hazard for West Nile virus and alerted the County accordingly.

    We became aware that BOA secured the winterization of this home in 2011 after the default of these property owners on their mortgage. This action must have been taken to protect what the BOA viewed as their legal ownership of these premises. Why then, after the property was vacated by the property owners of record, does BOA continue to treat the occupants as the legal owners?
    We are also aware of BOA’s forgiveness of the second, or subordinate, loan that it made to this property owner in the amount of approximately $100,000. As the total amount loaned to these delinquent debtors totaled roughly the sales price, we estimate that at least $500,000.00 remains due BOA. Considering the interest that has accumulated in the ensuing three years, we imagine that a good deal more is left owing.

    Due to the significant fall in home values, and especially in light of the deplorable condition in which this home now finds itself, its market value would approximate one half of the outstanding loan amount.

    It is clear to us, now more familiar with the “main breadwinners” work record that he appears to have great difficulty finding work and lost his job with the BOA shortly after purchasing this home. His attempts to support a family of five on whatever limited employment is available to him in this remote, seasonal area seem inadequate.

    BOA’s hopes of ever securing any responsible payment of the amounts owed it are slim, if they exist at all; and this latest report we received of an attempt to “work out” the loan is ludicrous, if not exceptionally and personally damaging to us as neighbors in this unfortunate situation.

    Additionally, the eldest daughter in this family is in frequent trouble with local law enforcement and is, in fact, in court today answering two drug-related charges.

    It is clearly false economy for the BOA to believe that the correct remedy for this problem is to wait for an epiphany that will turn these debtors into responsible borrowers or good neighbors. A better approach would be to conduct the auction of this property as scheduled and allow a competent borrower to purchase and rehabilitate the same. We certainly feel that BOA stockholders would appreciate this latter approach as well.
    It is perplexing, too, why some hard-working individuals trying to care for and support their homes in this and other communities and who truly suffered hardships for which they were not responsible, were displaced from their homes by BOA in short periods of time and without the same opportunities granted these homeowners. We’re sure these BOA customers would appreciate an explanation for the disparate treatment evidenced here.”

  12. AL says:

    I don’t disagree at all with your position vis a vis BOA’s commission of fraud upon it’s mortgage customers facing foreclosure.
    However, I would like to alert you and your readers to the OPPOSITE situation whereby they FAIL to protect the integrity of neighborhoods by REFUSING TO TAKE OTHERWISE LEGITIMATE FORECLOSURE ACTION THEREBY PROTECTING NEIGHBORING PROPERTY OWNERS AND THEIR OWN SHAREHOLDERS!
    The following is the essence of an email (names/locale removed) sent to BOA “customer relations” folks identified in this wiki post:
    http://wiki.answers.com/Q/What_is_the_phone_number_of_Bank_of_America_corporate_offices_in_Charlotte_NC
    “The reason for this email is to express the consummate frustration that we have been experiencing for one year now as a result of your bank’s consistent refusal to proceed with an entirely warranted and justified foreclosure of a home. We just completed a call to the law firm representing your bank after noticing that this property suddenly disappeared from their list of properties to be auctioned.

    Noticing that these debtors had returned to this property in July 2012, after leaving it a year earlier, we called both the local police, searched county records, and obtained whatever information available regarding this property’s status.

    It is clear that the buyers of this home fell delinquent in their mortgage payments sometime in 2010 and, in 2011, left the home completely. Having owned our home for 12 years as a part-time resident who visits often, we noted the increasingly poor condition of this home and its unkempt yard. Clearly, these are residents who cannot, or will not, respect either their legal/financial obligations or the integrity of the neighboring properties.

    These residents returned in the heat of the summer of 2012 without ensuring that the premises had running water or air conditioning. If not for our efforts with local and state officials where we advocated that they cite this home as uninhabitable, the returning residents would not have paid an outstanding water bill and provided running water to the home. They were using pool water, which had not been filtered/treated for at least a year, to flush their toilets. Because of a serious mosquito problem in the area, the Town had to treat the community with pesticides. We were concerned that the untreated pool was a potential health hazard for West Nile virus and alerted the County accordingly.

    We became aware that BOA secured the winterization of this home in 2011 after the default of these property owners on their mortgage. This action must have been taken to protect what the BOA viewed as their legal ownership of these premises. Why then, after the property was vacated by the property owners of record, does BOA continue to treat the occupants as the legal owners?
    We are also aware of BOA’s forgiveness of the second, or subordinate, loan that it made to this property owner in the amount of approximately $100,000. As the total amount loaned to these delinquent debtors totaled roughly the sales price, we estimate that at least $500,000.00 remains due BOA. Considering the interest that has accumulated in the ensuing three years, we imagine that a good deal more is left owing.

    Due to the significant fall in home values, and especially in light of the deplorable condition in which this home now finds itself, its market value would approximate one half of the outstanding loan amount.

    It is clear to us, now more familiar with the “main breadwinners” work record that he appears to have great difficulty finding work and lost his job with the BOA shortly after purchasing this home. His attempts to support a family of five on whatever limited employment is available to him in this remote, seasonal area seem inadequate.

    BOA’s hopes of ever securing any responsible payment of the amounts owed it are slim, if they exist at all; and this latest report we received of an attempt to “work out” the loan is ludicrous, if not exceptionally and personally damaging to us as neighbors in this unfortunate situation.

    Additionally, the eldest daughter in this family is in frequent trouble with local law enforcement and is, in fact, in court today answering two drug-related charges.

    It is clearly false economy for the BOA to believe that the correct remedy for this problem is to wait for an epiphany that will turn these debtors into responsible borrowers or good neighbors. A better approach would be to conduct the auction of this property as scheduled and allow a competent borrower to purchase and rehabilitate the same. We certainly feel that BOA stockholders would appreciate this latter approach as well.
    It is perplexing, too, why some hard-working individuals trying to care for and support their homes in this and other communities and who truly suffered hardships for which they were not responsible, were displaced from their homes by BOA in short periods of time and without the same opportunities granted these homeowners. We’re sure these BOA customers would appreciate an explanation for the disparate treatment evidenced here.”

  13. Melanie Breech says:

    After 7 years of applying and reapplying I was finally given a so called Modification. Trial period will start next month so I am curious to see how it will go after that. I had never stopped making my payments, however I fell behind when I became sick and was unable to catch back up. Every month for 7 years I recieved threatening mail in triplicate. Thay began to back the hell off when I told them I was not leaving and if they forced me to, we would both be losers because I would bulldoze the property to the ground and I ment it and still do. I know how to run a dozer and I would suggest to everyone out here if thay are going to screw with us then it is time we all fight back. Look at it like this they are already ruining our credit be damned if they are just going to walk away with a fat smile on their face as they take our homes and sell them to some other schmuck for pennies on the dollar. SO people take my word if they do not want to help you all then BULLDOZE the damn house to the ground and leave it for them to clean up. The more people who start doing this the better leave the lying, stealing Bastards with what they left us with NOTHING.

    M. Breech

  14. Melanie Breech says:

    After 7 years of applying and reapplying I was finally given a so called Modification. Trial period will start next month so I am curious to see how it will go after that. I had never stopped making my payments, however I fell behind when I became sick and was unable to catch back up. Every month for 7 years I recieved threatening mail in triplicate. Thay began to back the hell off when I told them I was not leaving and if they forced me to, we would both be losers because I would bulldoze the property to the ground and I ment it and still do. I know how to run a dozer and I would suggest to everyone out here if thay are going to screw with us then it is time we all fight back. Look at it like this they are already ruining our credit be damned if they are just going to walk away with a fat smile on their face as they take our homes and sell them to some other schmuck for pennies on the dollar. SO people take my word if they do not want to help you all then BULLDOZE the damn house to the ground and leave it for them to clean up. The more people who start doing this the better leave the lying, stealing Bastards with what they left us with NOTHING.

    M. Breech

  15. Allen Keller says:

    Street Justice!…i hope bama reads this,cuz the prez needs to do something-faith and karma will bring that ugly bitch and the rest of BA to the sewer drains.

  16. Allen Keller says:

    Street Justice!…i hope bama reads this,cuz the prez needs to do something-faith and karma will bring that ugly bitch and the rest of BA to the sewer drains.

  17. Allen Keller says:

    Get real….property value lost 50-65% and no one could refi-jobs went up in smoke because the housing market went south…..people got worried and left..some people just aint street smart or have not gone to my training class on how to f… B of D A.

  18. Allen Keller says:

    Get real….property value lost 50-65% and no one could refi-jobs went up in smoke because the housing market went south…..people got worried and left..some people just aint street smart or have not gone to my training class on how to f… B of D A.

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