Lawsuit: BofA paid bonuses for foreclosures

Former employees claim that they received cash and gift cards for denying loan modifications to qualified borrowers

Six former Bank of America (BofA) employees have accused the bank of intentionally driving homeowners into foreclosure, and then rewarding workers who did so with cash bonuses and gift cards.

The allegations emerged in court papers filed as part of a class action suit from BofA borrowers in 26 states. According to the ex-employees, BofA instructed them workers to stall loan assistance applications and lie to eligible homeowners about the status of their mortgage payments in an effort to disqualify them from the government-run Home Affordable Modification Program (HAMP).

Alanna Byrne

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