Wednesday, June 15, 2011

Feds Accuse BofA Of Foot-Dragging, Providing Incomplete Information, Reluctance In Allowing Employee Interviews In Current FHA Mortgage Probe

Bloomberg reports:
  • Bank of America Corp., the largest U.S. lender, “significantly hindered” a federal review of its foreclosures on loans insured by the Federal Housing Administration, the U.S. said.
  • The bank was slow in providing data and offered incomplete information, according to the U.S. Department of Housing and Urban Development inspector general’s office, which conducted the review. The bank cooperated with the office, Dan Frahm, a company spokesman, said.
  • Our review was significantly hindered by Bank of America’s reluctance to allow us to interview employees or provide data and information in a timely manner,” William Nixon, an assistant regional inspector general for the agency, said in a sworn declaration.
  • The declaration, dated June 1 and obtained yesterday by Bloomberg News, was filed as an exhibit in a lawsuit by the state of Arizona against the Charlotte, North Carolina-based bank. Arizona, which is seeking to interview former Bank of America employees, accuses the bank of misleading homeowners who were seeking mortgage modifications.

For more, see BofA Hindered Foreclosure Review, U.S. Says.