BofA: Ex-Workers Were Not Rewarded For Sending Homeowners Into Foreclosure

Posted by Patrick Barnard on July 12, 2013 No Comments
Categories : Mortgage Servicing

Bank of America (BofA) is reportedly refuting claims by ex-workers who allege in a lawsuit that the firm awarded bonuses for sending homeowners into foreclosure.

The seven ex-workers made their claims in affidavits connected with a lawsuit filed last month in federal court in Massachusetts. The suit was brought on behalf of dozens of homeowners who claim the bank misled them about the status of their mortgages.

According to a Bloomberg News report, BofA has responded by saying that the workers' claims are ‘impossible’ because their roles did not allow them to understand the full scope of assistance efforts.

"The declarants' wild misrepresentations about their roles lead to impossible claims about what they did and saw," BofA said in court papers, according to the report.

BofA added that the ex-workers "could not have witnessed what they claim to have witnessed because they were not in a position to do so and would not have witnessed such things in any event because Bank of America's actual practices were diametrically opposite."

The bank added that the ex-workers' supervisors said that they did not give incentives for improper behavior and that the bank made good-faith efforts to help distressed borrowers.

Six of the seven former workers were fired for inappropriate behavior, according to the report.

One of the ex-workers reportedly claims debt collectors at the bank were given $500 bonuses and gift cards to retailers including Target Corp. and Bed, Bath & Beyond Inc. for getting borrowers to agree to enter foreclosure.

Register here to receive our Latest Headlines email newsletter




Leave a Comment