Bank of America systematically worked to deny thousands of loan modifications with specific delay tactics that included lying to homeowners and repeatedly requesting documents employees knew were already in the system, according to statements added last week to a multi-district lawsuit filed in federal court.
The suit, which is seeking class-action status and includes a Boynton Beach homeowner, claims the lender purposefully hindered modifications requested by borrowers through the federal Home Affordable Modification Program.
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The federal Home Affordable Modification Program was announced in 2009 to help homeowners by giving incentives to banks to lower mortgage payments. Former Bank of America employees said the lender blocked eligible homeowners from getting modifications with purposeful delay tactics.