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Bank of America Corporation Message Board

  • no_need_no_stinkin_badges no_need_no_stinkin_badges Jun 21, 2013 5:45 PM Flag

    What has BAC been up to?

    The lying game?

    From Motley Fool:

    "We recently learned that Bank of America employees were allegedly incentivized to stall qualified foreclosure application in order to generate more fee income. As that revelation came to light, the bank's reputation was once again in jeopardy of losing customer confidence, which could keep potential new mortgage customers from working with the bank. Now, a new investigation has revealed that mortgage servicers, such as B of A, were misrepresenting the underlying mortgages in mortgage-backed securities to the trustees holding the mortgage bonds.
    It all boils down again to fee generation. The investigation alleges that the servicers were claiming the homes in question were still in the foreclosure process, while in fact they had been sold or paid off. Since the bond holders would have to pay fees while the homes were in foreclosure, this allowed the mortgage servicers to rake in the dough.
    So now Bank of America faces not only customer discontent, but also that from investors and future business partners in the MBS world. With its goal of capturing more of the mortgage market, the bank is in serious trouble following the newest revelations. Not to mention potential lawsuits -- and we all know how those hurt the bank."

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