Second Whistle-Blower Suit Claims BofA (BAC) Interfered in Mortgage-Loan Mods
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Citing a compliant filed in federal court Wednesday, the NY Post is reporting BofA (NYSE: BAC) used some tactics to prevent millions in losses resulting from mortgage modifications, while netting some upside for participating in the program.
Former Urban Lending Solutions (ULS) employee Greg Mackler made the complaint. ULS was a contractor to BofA for some of its HAMP work.
According to Mackler, BofA and its loan-servicing subsidiary employed "business practices designed to intentionally prevent scores of eligible homeowners from becoming eligible or staying eligible for permanent HAMP modification."
This is the second whistle-blower complaint stemming from the $1 billion False Claims Act settled by BofA and the US Attorney’s Office for the Eastern District of New York on February 9th.
Shares of BofA are indicated for a higher open Thursday.
Former Urban Lending Solutions (ULS) employee Greg Mackler made the complaint. ULS was a contractor to BofA for some of its HAMP work.
According to Mackler, BofA and its loan-servicing subsidiary employed "business practices designed to intentionally prevent scores of eligible homeowners from becoming eligible or staying eligible for permanent HAMP modification."
This is the second whistle-blower complaint stemming from the $1 billion False Claims Act settled by BofA and the US Attorney’s Office for the Eastern District of New York on February 9th.
Shares of BofA are indicated for a higher open Thursday.
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