Unbowed by the excruciating testimony provided by seven former employees in the Home Affordable Mortgage Program lawsuit currently under way in Boston, Bank of America Corp (NYSE:BAC) has filed its response to the homeowners bringing the lawsuit and has taken aim at those former team members, as well.
What was the bank’s rejoinder to the allegations of a home loan modification process riddled with deceit and disrespect to both employees and homeowners? Basically, Bank of America Corp (NYSE:BAC) has painted the former workers as miscreants and liars.
It is not surprising, of course, that Bank of America Corp (NYSE:BAC) would deny such charges and try to discredit those who have outlined odious business practices such as destroying paperwork submitted in a timely manner by borrowers in dire need of a loan modification — then telling those customers it never received the documents in the first place.
But, the bank’s claims that these seven people have provided testimony in this class action case merely because “at least six” of them were fired from the bank — and therefore have an ax to grind — seems absurd. Surely, perjuring oneself solely to try to smear the reputation of a former employer seems ludicrous at best.
At any rate, Bank of America Corp (NYSE:BAC)’s reputation will scarcely notice another ding. The bank has an overwhelmingly lousy reputation in general, and its handling of mortgages has been abysmal.
Not that Bank of America is alone in that regard. The National Mortgage Settlement — the pact that introduced the term “robo-signing” into the post-financial crisis lexicon — was a direct result of all manner of mortgage-servicing shenanigans on the part of Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC), as well as Bank of America. Notably, a recent report from the settlement’s monitor has observed that all of these banks still need to clean up their acts, since none of the above signatories received a perfect score for correctly administering the terms of that agreement.
B of A: The “blitz” was a good thing
Just as Bank of America Corp (NYSE:BAC) states that the ex-employees “wildly misrepresented” what they did during their tenure with the bank, some of its own explanations seem suspect.
On the subject of the “blitz,” during which it was alleged that up to 1,500 loan modification files were destroyed simply for being over 60 days old, Bank of America Corp (NYSE:BAC) takes an interesting stance. Blitzes were a good thing, the bank asserts, whereby the bank approved overtime so employees could speak with borrowers who were presumably unreachable during weekdays — all in an effort to approve as many eligible applicants as possible.