Bank of America accused of lying to homeowners

Boynton Beach resident claims lender lied about loan modification

Jun.June 17, 2013 03:00 PM

A Boynton Beach resident is among the plaintiffs in a multi-district lawsuit alleging that Bank of America willingly hindered modifications requested by borrowers through the federal Home Affordable Modification Program, the Palm Beach Post reported.

In her lawsuit, Shari Goldman said she completed a trial loan modification that reduced her monthly payment by $390. She continued to pay the same amount, but six months later, was denied a permanent modification and was told she owed $3,158 in back payments.

She threatened with foreclosure and paid the $3,158. Despite appealing it, she was denied again, the newspaper said.

Palm Beach County court and property records show no foreclosure was filed against Goldman and that she is still the owner of the home.

The suit filed last week in federal court is seeking class-action status. The statements from former Bank of America employees accused the lender of intentionally denying thousands of loan modifications by lying to homeowners and repeatedly requesting documents employees knew were already in the system. Employees who placed 10 or more accounts into foreclosure in a month could get $500 bonuses or gift cards to Target and Bed, Bath and Beyond, a former employee said in a statement.

Bank of America responded, saying the statements are “rife with factual inaccuracies” that will be addressed in opposition documents filed next month.

Earlier this month, Florida’s attorney general Pam Bondi wrote in a five-page letter to Bank of America claiming it may not be fully complying with the terms of last year’s nationwide, five-bank mortgage settlement, as previously reported. [Palm Beach Post]Mark Maurer

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