BofA Did Not Cooperate In Foreclosure Practices Review

by San Antonio Attorney

Bank of America Corp unjustifiably caused burden to the federal regulators who have been evaluating the financial institution’s foreclosure procedures, based on a court filing.

State attorneys general and U.S. regulators were investigating the unsound practices in the bank mortgage industry that were exposed in 2010, such as banks using “robo-signers” for signing many foreclosure documents each day without being read.

The office of inspector general for Department of Housing and Urban Development reviewed the five biggest mortgage servicers in the U.S, which includes Bank of America, the largest bank by assets.

Based on the court papers filed by the State of Arizona, William Nixon, the departmental auditor, said that BofA created a substantial hindrance to the review.

BofA was not cooperative in providing documents as well as other information, according to Nixon’s sworn statement on June 1.

In the filing Nixon said that the bank’s attorneys constrained the effectiveness of the interviews it conducted.

Dan Frahm, the spokesman of BofA, said that whatever hint given that the bank was not completely cooperative was incorrect.

According to Frahm’s email, they have provided access to over 55,000 pages of documents both on-site and follow-up. On their own accord, they coordinated interviews and helped in preparing depositions.

The review of the inspector general has revealed that the banks did not obtain the required paperwork in filing so that the Federal Housing Administration will repay them for government insured debts on properties that were foreclosed and sold for the price which is lower than the outstanding balance for the loans, reported by a person acquainted with negotiation talks of the regulators and the banks.

Arizona sued Bank of America in 2010 for allegedly deceiving customers about modifications in home loans. According the attorney general, the bank violated the laws with regards to handling problematic mortgages.

More Information on Bank of America’s deceptive practices can be found under the San Antonio Attorney blog section.

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