Dept. of Justice Sues Banks for Mortgage Fraud

The Department of Justice has announced that it is suing Bank of America for lying to investors regarding $850 million dollars worth of worthless mortgage back securities in 2008.

Bank of America is also embroiled in a lawsuit filed by New York Attorney General Eric Schneiderman, head of the Mortgage Crisis Task Force for lying to homeowners and taking their homes.

Affidavits by Bank of America employees are substantiating that B of A trained employees to systematically violate deadlines and push people into foreclosure by telling them they had not received the homeowner’s paperwork.

Hundreds of violations have been uncovered. Bank of America Customer Service Representative, Erica Brown says that, “During my time at Bank of America, I saw well over a hundred cases in which a Bank of America ‘analyst’ canceled loan modifications and stated ‘non-payment’ as a reason for the cancellation, when the computer system revealed that the homeowner had actually made the required payments.”

Simone Gordon, Senior Collector for Bank of America states that,“We were told to lie . . . We were asking for documents that we already had.”

In another suit, the Securities Exchange Commission, Department of Justice and the Consumer Financial Protection Bureau (CFPB) are investigating PNC Financial and SunTrust regarding allegations that they discriminated against protected borrowers based on race, color and religion.

Additionally, PNC has been subpoenaed for claims made for foreclosure expenses related to the loans insured or guaranteed by Fannie Mae or Freddie Mac. Sun Trust is being investigated for irregularities in their processing of mortgage-modifications and regulators are alleging that Sun Trust failed to properly process loan modification application of mortgages owned by Fannie Mae and Freddie Mac.

Sun Trust is accused of misleading borrowers with regard to timelines and other features of the HAMP modification procedure.

Last week, JPMorgan Chase & Co disclosed that it faces investigation by the Department of Justice (DOJ) and the Securities Exchange Commission (SEC) over the sale of risky residential mortgage backed securities (RMBS).

Bank misconduct has resulted in thousands of homeowners illegally losing their homes without banks facing sanctions. Attorney General Eric Holder informed the banks and the public in March that the banks are too big to prosecute.

Without fear of facing legal repercussion for their actions, new evidence reveals the nation’s largest banks continue to fabricate documents and illegally kick people out of their homes, even after inking a series of settlements over the same abuses.

Unfortunately the Attorney General’s settlement over foreclosure fraud was so weakly written that it still allows misconduct to occur.

Diane Thompson, a mortgage lawyer with the National Consumer Law Center said banks profit by cutting corners on documents. “Banks have tremendous monetary incentive not to comply with standard legal procedures. They have been doing it sloppily and illegally for a long time, and they have a sense of entitlement.”

Share Button
Print Friendly

9 Comments

  1. 962831 782887I cannot thank you fully for the blogposts on your internet page. I know you placed a great deal of time and effort into all of them and hope you know how considerably I appreciate it. I hope I will do precisely exactly the same for one more individual at some point. Palm Beach Condos 667999

  2. 911922 223267Considerably, the story is in reality the greatest on this noteworthy topic. I agree together with your conclusions and will eagerly watch forward to your next updates. Saying nice one will not just be sufficient, for the fantastic clarity inside your writing. I will immediately grab your rss feed to stay privy of any updates! 451078

  3. 953902 218338woah i like yur internet site. It genuinely helped me with the information i wus seeking for. Appcriciate it, will bookmark. 908332

  4. What a vast threaded discussion! I often deem fantastically on your own in my choice not to immunize. I missing my “I am sunny with non-immunized patients” pediatrician after heart told that people in the vein of me are the reason that whooping cough still exists.

  5. One could survive distress excluding not disgrace.

  6. 21387 961138Hi there! I basically want to give a huge thumbs up for the very good data you can have appropriate here on this post. I will likely be coming once again to your weblog for far more soon. 866075

  7. 211360 161497really good post, i undoubtedly enjoy this site, maintain on it 924095

  8. 266213 649563Actually your creative writing skills has encouraged me to get my own site now. Actually the blogging is spreading its wings fast. Your write up is a great example of it. 970377

Post a comment

Your email is never shared. Required fields are marked *

*
*

Current ye@r *