Whistleblower Suit Claims Bank of America Fraud Involving HAMP, Settlement

April 2, 2012
By David Goldman on April 2, 2012 8:15 AM |

Jacksonville Foreclosure Defense TeamA Colorado resident, Gregory Mackler, turned whistleblower filed a lawsuit against Bank of America claiming that he had firsthand knowledge of wrongdoing by the Bank. He received the information while working alongside Bank of America executives as an employee of Urban Lending Solutions, a company contracted to do some of the Bank's HAMP work. The suit is the second pertaining to the $25 million mortgage servicing agreement filed of recent. The $25 billion settlement resolves claims that Bank of America's Countrywide Financial subsidiaries defrauded the Federal Housing Administration (FHA) by inflating appraisals used for government-insured home loans, as well as claims involving the Home Affordable Modification Program or HAMP.

Mackler claims that he saw Bank of America and its loan servicing company, BAC Home Loan Servicing, use business practices he claims intentionally prevented thousands of eligible homeowners from becoming eligible or staying eligible for HAMP modifications. The complaint also alleges that the Bank and its agents routinely pretended to have lost homeowner's documents, failed to credit payment during trial modifications and intentionally misled homeowners about program eligibility. Thus, Bank of America was able to have its cake and eat it too because they were able to retain Government benefits under HAMP while allowing only the minimal number of modifications to go through. View the entire complaint here.

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