“Bank of America also gave employees gift cards to retail stores like Target or Bed Bath & Beyond as rewards for placing accounts into foreclosure,” declared former Bank of America employee Simone Gordon, under penalty of perjury, in recently filed court documents. $500 bonuses to employees who could foreclose on 10 customers in one month as opposed to bonuses to help families stay in their homes: does this sound like a way to treat customers to you? Well, if the sworn testimony from a federal case filed in Massachusetts by six former bank employees is true, then this is one of the ways Bank of America incentivized a diabolical plot to steal millions of homes from families across America while reaping vast profits through their alleged lies and devastating trail of destruction.
In our first video, “Bank of America Wants You to Die Before They Modify,” we outlined some very strange and unethical practices that seemed to be organized from within the bank. It turns out that Bank of America’s mortgage servicing unit methodically lied to homeowners, fraudulently denied loan modifications, and paid their employees bonuses for purposefully pushing people into foreclosure, according to the statements made by former Bank of America employees in sworn declarations. Many Banking Bad followers and average American customers knew this was the case because they have been put through this fraudulent process with Bank of America when they applied for a loan modification. But hearing these allegations come from the mouths of six brave former employees and one contractor, whose sworn statements were included in the civil lawsuit, gave many of us the vindication that was needed to start healing from this long-perpetuated banking culture of abuse.
There are so many troubling aspects to this case, with one notably despicable procedure called a “blitz” near the top of the lengthy list. William Wilson, Jr., a manager who worked in underwriting at Bank of America from 2010 to 2012, describes the “blitz” in his sworn statement. A blitz occurred about twice a month when the bank ordered all files with loan modification documentation 60 days or older to be destroyed. These files were the applications to save homes for the customers who had applied for this program in good faith and trusted Bank of America, who promised to help us. These were the files that took weeks and sometimes months to gather and submit in one place. Wilson stated that the bank simply wiped them out in one “blitz.” “During a blitz, a single team would decline between 600 and 1,500 modification files at a time,” Wilson said in the sworn testimony. To justify the denials, Bank of America employees produced fictitious reasons, such as claims that the applicants had not sent in the required documents, when they certainly had. We could go on and on about this, but the reality is that this is finally beginning to be properly exposed. However, we’ll bet that no one goes to jail and settlements or trivial fines will be paid. That would send the wrong message to Bank of America. It should not be profitable to destroy the American Dream and systematically steal homes from people you publicly claim to be “helping” stay in their homes during a financial crisis. Banking Bad was created to expose this type of behavior. As for employees that allegedly received “Target” gift cards as incentives to help people lose their homes, was it worth it?