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Bank America Mortgage Racket: We Were Told To Lie

Posted by Larry Doyle on June 14, 2013 9:02 AM |

Not that we needed any further evidence of the racketeering enterprises run within the mortgage operations on Wall Street, but with the recently delivered testimony of Simone Gordon, a senior collection officer within Bank of America’s mortgage ‘racket’ . . . we got it.

I first questioned whether the activities within the mortgage servicing enterprises on Wall Street rose to the level of racketeering in early 2011 after having becoming aware of Wall Street’s practice of robo-signing mortgage documents in order to engage in the fraudulent conveyance of countless mortgages.

Many individuals responded to my initial commentary and subsequent articles with incriminating details as to how they were being abused by the large banks supposedly charged with helping them modify their mortgages. In truth, the mortgage modification process under the guise of the Home Affordability Modification Program (HAMP) was in fact more often a charade, albeit a painful one at that.

Former Washington insiders Sheila Bair (past chair of the FDIC) and Neil Barofsky (Special Inspector General of the TARP) wrote extensively in their  respective books about the complicit nature of the US Treasury under Tim Geithner in not holding the banks accountable in this process. Let’s not be so discreet. Tim was in bed with his Wall Street cronies, but it was all too many American homeowners who were really getting screwed.

In recent testimony shared in the U.S. District Court in Massachusetts, Simone Gordon pulls back the blanket on the ongoing Wall Street – Washington incestuous, crony, corruptible engagement. I recommend you wear a pair of high boots and/or waders and bring multiple barf bags as you experience the cesspool laid out by Gordon:

Beginning in 2009, I regularly spoke to people who had received HAMP Trial Period Plans, made their trial payments, and who were calling to inquire about the status of their expected permanent loan modification.

Using the Bank of America computer systems I saw that hundreds of customers had made their required trial payments, sent the documents requested of them, but had not received permanent modifications.  I also saw records showing that BoA employees had told people that documents had not been received when, in fact, the computer system showed that BoA had received the documents.

This was consistent with the instructions my colleagues and I were given.

We were told to lie to customers and claim that BoA had not received documents it had requested, and that it had not received trial payments (when in fact it had). (LD’s highlight)

Why was it that they were told to lie?

My colleagues and I were supervised by “Team Leaders”  who were, in turn, supervised by “Site Leaders.” Site leaders regularly told us that the more we delayed the HAMP modification process, the more fees Bank of America would collect.

For added measure, in what can only be compared to a scene from a foreign sweatshop in a faraway land, Gordon lays out that:

Employees who were caught not carrying out the delay strategies that Bank of America instructed were subject to discipline including termination. Employees who were caught admitting that Bank of America had received financial documents or that the borrower was actually entitled to a permanent loan modification were disciplined and often terminated without warning.

Can you spell R-A-C-K-E-T?

For those who would like to read and review the entire 5-page testimony, I welcome sharing:

BofA_HAMP

There you go, folks. Uncle Sam (aka President Obama and team) lays out a program supposedly to help homeowners modify their mortgage and stay in their homes and the Wall Street banks, in this case Bank of America, out and out lie to American citizens so as to maximize their own profit at their expense.

So I ask, where’s the justice? A token fine of a few billion dollars and pennies on the dollar to a smattering of our fellow citizens? Please.

Why isn’t Brian Moynihan summarily fired? Where are the major media outlets on this story?

The price we really pay as a nation is the continued erosion of any sense of integrity in the system along with a total decimation of trust and confidence in Wall Street and Washington at large.

I welcome comments, feedback, constructive criticisms. I would especially like to hear from people directly impacted.

I thank the reader who brought this story to my attention.

Navigate accordingly.

Larry Doyle

For those reading this via a syndicated outlet please visit my blog and comment on this piece of ‘sense on cents.

Please subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Peter Scannell

    Why does it take a class-action to produce such testimony?

  • Jeff Oliver

    Nicely done Larry Doyle! I like to stay on top of these things and had no idea this was happening. I too wish the media would pick up on this story. Although adding more “crisis” to the menu might be overwhelming!

    Thanks for all that you do for so many people.

  • Linda T

    I personally sent the 8 declarations to the NY AG before the story broke. Simone Gideon’s testimony is only part of this story. If you need the remaining 7 declarations, feel free to contact me directly.

  • fred

    LD,

    There is a disconnect here, Sheila Bair and Neil Barofsky point fingers at Timmy G for ineffective oversite of banks re:HAMP, yet “President Obama and team lays out a plan to supposedly help homeowners”.

    Which was it? Did the Obama administration really want to help homeowners re:HAMP, was Timmy inept, or was it all a scam perpetrated on the ignorant to get Potus reelected and generate fees for the banks at public expense?

  • LD

    Fred,
    Having read those books I very much came away with the impression that geithner, summers, and bernanke did whatever they wanted or felt appropriate without any real check or balance. What does that mean? HAMP was largely a charade. Bank recapitalization was the priority the and now. The foreclosure crisis in reality was part and parcel of our rent seeking economy. Think the private equity funds who launched real estate funds are pleased to have been able to raise capital and purchase a lot of homes ? Of course. Happy Father’s Day.

    • fred

      LD,

      Happy father’s day to you as well. They sure do grow up fast don’t they?

      I don’t want to put words in your mouth, but what I hear you saying is that the three “mousekateers” were running the show; they were in kahoots with the banks (in the national interest of course) and Obama is/was nothing more than a “figurehead for the masses” intent on creating a legacy of wealth redistribution through public opinion polls.

      Geitner and Bernanke I get, smart and powerful minions quite capable of leading an inexperienced junior senator, but I’m intrigued by Summers, I always looked at him as an “ivory/ivy towered” liberal, the mentor and architect of a “new age” global economy financed by securitized derivatives provided by “too big to fail” banks.

      1) What do you make of Summers leaving the Administration?

      2)How does his liberalism “sit with” the profit motive and stock options of “too big to fail”?

      3) By including “too big to fail” in the equation, is the “Achilles heal” of Summers grand illusion fear and greed?

      4) Another example of liberals trying to justify the means with the ends. Don’t these justifications always require a deal with the devil to ensure success, what price will be paid this time?

  • LD

    Summers is the smartest guy in the room, right? Just ask him. Wants to be the next Fed chair which was not going to happen by going straight from a seat inside the administration. Knows he needs support of the banksters so he will support dimon and blankfeins positions. Although Janet Yellen, a dove, is thought to be the leading candidate to be the next fed chair. I would not be surprised if BO nominates LS to gain political capital on a number of fronts which he can cash it down the road.

    Yes HAMP was a charade promoted for political cover but little else.

  • Russ

    Larry, Tales such as this are testament as to why we will never be able to unwind the situation we are in and get back to fair capitalism. The government is either complicit or stands by and does nothing while everyday people are screwed out of their money.

    It’s simply a lower level version of what is happening to the Madoff victims.

  • Ray

    I have absolute faith in the wealth creation system of this country, and to suggest it is lacking is frankly un-American and unpatriotic. Since you hate this country so much, perhaps you should look into retiring abroad.

    • LD

      Ray,

      How long have you been reading my blog? I do not have time to go fully in depth to the cronyism within our nation that is crippling our global economy but allow me to share the following. Rather than gratuitous verbal diarrhea of the sort you dribbled out above, maybe you might care to read, review and comment on the following:

      Wall Street – Washington Incest (that link will keep you exceptionally busy so be patient but I think you will find a “wealth” of info there.

      Rent Seeking Economy….one interesting review.

      Much more where these come from.

      Welcome aboard.

      Hate this country? Really? No, not me. Love America along with the necessary truth, transparency, and integrity needed to make it even better.

      Come on back and comment regularly but save the gratuitous “nonsense on cents” and bring some detailed and thoughtful opinions so we might all benefit from your visits here.

  • http://www.helpthehomeowner.com Louie Frias

    EVERY day I have to deal with these fools. There nothing but a gigantic cesspool of lying, thieving douchebags. Other than that, I guess they’re alright. Not!






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