New Report Suggests that Banking Managers Knew Full Well About Foreclosure Errors
As the value of homes continue to slide downward to the point that the homes that people purchased on good faith, and with large mortgages, are worth drastically less than when they bought them; or as the popular term goes – they’re underwater.
Following the collapse of the housing and mortgage markets the banks that handed out mortgage money like bottles of vodka at a bachelor party tried to place the blame for all the bad mortgages on low-level employees.
In a report just published this assumption is tossed out like yesterday’s garbage and according to David Montoya, Inspector General of the Department of Housing and Urban Development, the managers responsible for mortgages were more than aware of the problems but did absolutely nothing to correct them.
One of the examples cited came from two employees at Bank of America who testified that they had try to raise concerns about whether documents were being properly notarized but were told by managers to keep quiet and keep on doing what they were told to do – process paperwork.
One vice president said documents in her department were checked only for “formatting and spelling errors,” not the underlying figures or facts in the case.
“Bank of America did not establish effective control over its foreclosure process,” according to the report, to be released Tuesday. And as foreclosure cases multiplied, Bank of America’s management turned up the pressure on employees to move faster. “Despite management representations to the contrary,” the report says, “employee performance reviews demonstrated that Bank of America used defined goals and metrics to evaluate performance-based production in its document execution group.”
via New York Times
Of course Bank of America wasn’t alone in doing this as there are also employees from Wells Fargo where made up job titles like “vice president of loan documentation” and how one employee became a vice president based on his previous job of working at a pizza restaurant.
All in all it would seem that this abdication of responsibility was prevalent through out the banking industry and as result has ruin the lives of more people that we can possibily image; and yet they get bail outs and face no criminal charges. It’s no wonder people have no faith whatsoever in the banking industry.