Bloomberg news unleashed an exclusive report revealing allegations that Bank of America (BAC) contracted with an outside firm, Urban Lending Solutions, to handle complaints from homeowners fearing the loss of their homes.
The article claims homeowners were harmed by deceptive practices during the process and were erroneously told they had reached the BofA executive suite when in fact their calls had been forwarded to an outside firm.
The report cites former employers of Urban Lending Solutions in Broomfield, Colo., who claim that while receiving complaints from BofA borrowers and legislators, the firm ended up sending homeowners either into foreclosure or pricier loan modifications through various delay tactics.
Bloomberg claims employees allegedy did this by stalling homeowners with ongoing requests for paperwork and incorrect income calculations.
"Instead of helping homeowners as promised under agreements with the U.S. Treasury Department, Bank of America stalled them with repeated requests for paperwork and incorrect income calculations, according to nine former Urban Lending employees. Some borrowers were sent into foreclosure or pricier loan modifications padded with fees resulting from the delays, according to the people, all but two of whom asked to remain anonymous because they signed confidentiality agreements," Bloomberg wrote.
