It’s bad enough that banks have been negligent at implementing the government’s loan modification program, but now a BoA mortgage loan officer is being sued for making extra money illegally on struggling homeowners. According to the Boston Globe, a new lawsuit claims the employee was demanding as much as $1,500 from each borrower before offering help foreclosure help, and routing the funds through his own company, Foreclosure Alternatives. The lawsuit also alleges that the man falsely represented himself as an attorney for BoA.
Here’s the official court filing (PDF) so you can get the full details on how Wells Fargo pushed or even fraudulently placed black borrowers into sub-prime loans, even when those borrowers could afford prime loans, along with an office environment where employees threw around racist slurs, calling black borrowers “mud people” and their mortgages “ghetto loans.” The official statements referenced in the NYT article are in this document in full. The affidavits begin on page 48. Two screenshots inside…
UPDATE: Read the affidavits here.