Former Employees: Bank of America Used Dirty Tricks to Force People into Foreclosure

Jake Anderson
March 26, 2015

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(ANTIMEDIA) New York, NY — Following the mortgage meltdown and subsequent controversies related to the unethical and dirty tactics used by large banks in the mortgage industry, a group of six former Bank of America employees have come out of the shadows, revealing the down and dirty tactics used by their former employer. Ranging from managers to front line staff, corruption and loose ethics were part and parcel up and down the chain of command.

Lies, Half-Truths, and “Blitzes”
The statements from former Bank of America employees were filed in a Boston federal court (as part of a class action lawsuit involving homeowners who claim Bank of America blocked their attempts to utilize the Home Affordable Modification Program to avoid foreclosure). In their statements, the former employees stated Bank of America took active steps to assure homeowners who applied for the HAMP program were misled, discouraged, or flat out denied applications into the program. As the largest mortgage servicing company in the program, they had a massive incentive to prevent borrowers from utilizing this program.
According to a Bank of America underwriter, between 2010 and 2012, the bank used a tactic called a “blitz” to deny up to 1,500 applications at a time. In order to justify the rejection, the bank pressed on its staff to produce fictitious rationale, including claims of not filing proper paperwork (even in cases the homeowner actually filed said paperwork!) Five of the six former employees said in the statement they were told to lie and mislead customers regarding required documents. In addition to these unethical tactics, homeowners who called Bank of America were told by staff that their applications were “under review”, when in reality, no progress had been made in months on their applications. In some cases, the application had even been denied. It Pays to Lie (And Hurts to Tell the Truth)
According to the statements, staff who denied applications and pushed for foreclosures were rewarded with cash bonuses and gift cards for their “efforts”. Some of these bonuses totaled as much as $500, according to a collector for Bank of America. Bank representatives who did not hit their required foreclosure quota or objected to utilizing Bank of America’s dirty, unethical tactics were punished. In some cases, employees were fired for failing to meet their foreclosure quotas. Not Bank of America’s First Time Around The Block Bank of America has previously experienced backlash regarding their alleged misdeeds. In 2010, two states sued the bank for similar mishandling of loan modification applications. In 2012, Bank of America settled a lawsuit accusing the bank of additional HAMP application mishandling. The bank has settled both federal and state level suits, paying over $1400 to each homeowner who lost their home to foreclosure.
In an even bigger jaw-dropper, the bank has been accused of allegedly sending deceptive sales mailings to homeowners selling a mortgage refinancing program that would add tens of thousands to a home borrower’s loan. Relative to other banks, Bank of America has taken more time and spends more time and effort to avoid its borrowers from refinancing their homes. The allegations in the statement by the “gang of six” is just more proof positive of this bank’s unethical, shady tactics. When will Bank of America be held accountable for its wholesale deception of the American people?

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The 4 Point Globalist Plan to Replace AMERICA With AMERIKA

25 Mar, 2015 by Dave Hodge

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The blueprint for the globalist enslavement of America remains unchanged and we Americans are marching directly toward our final demise as a nation. With all the things we write about, and with all of the things that we call attention to, the methodology associated with the subjugation of the people of the United States, can be accurately summarized into a four part plan with the final goal of the destruction of the United States.

1- An economic collapse is unleashed against the people of the United States.
2- The ensuing chaos will lead to the pretext for the imposition of martial law.
3- The martial law phase will result in the imposition of a New World Order which will wipe out all notions of private property and constitutional liberties.
4- World War III will commence and this will culminate in the destruction of America.

This article is introductory in nature, and it will serve to expose the globalist four part agenda to enslave America. Subsequent articles will be offered as part of a multi-part series which will explore each of these four areas in detail along with some potentially life-saving suggestions intended to enhance individual survivability during each of the four phases.

Phase One: Economic Collapse
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Certainly, our $18 trillion dollar debt, plus our $240 trillion dollar unfunded liabilities (e.g. social security, Medicare) and the one (plus) quadrillion dollar credit swap derivatives debt are all poised to collapse the economy once and for all.

The entire GDP of the planet is under $70 trillion dollars. Therefore, the derivatives debt can never be paid off, not in this century and not even in the 50th century.

The collapse of the economy is a certainty. Certainly the globalists can merely wait for nature to take its course and the three aforementioned debts will naturally crush the economic life out of this country. However, our quasi-governmental agencies and governmental agencies have practiced for the day of collapse and seem to be accelerating the planned demise. Treasury Secretary Jack Lew and the UK’s Chancellor of the Exchequer, George Osborne, on November 10, 2014, ran a joint exercise simulating how they would prop up a large bank (e.g. Bank of America) with operations in both countries that has landed itself in trouble. Also taking part in the “bank failure drill” was Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.
I am convinced that the globalists will not wait for the nature to take its course and our economy is going to die a “violent death”, they will collapse the economy in a manner of their choosing the death of the American economic system will come like a thief in the night and the majority of sheep that inhabit this country, will never know what hit them. If you do not plan properly, every financial asset that you own will soon be gone.

Part two of this series will explore these specific events, and more importantly, some suggestions will be offered to help “soften the landing”.

The Rest Of The Story Here

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Major U.S. Allies Join AIIB to Establish New World Reserve Currency

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EXISTING HOME SALES MISS (AGAIN); WEATHER & “UNSUITABLY HIGH PRICE LEVELS” BLAMED

by ZERO HEDGE | MARCH 23, 2015

Following January’s disastrous dive in Existing Home Sales (which must be weather, right? Nope!) to a SAAR 4.82 million homes, February (with its even worse weather) saw a 4th month of missed expectations with a 4.88mm print against 4.90 mm expectations. As always, weather was blamed – which is odd given that the only drop in sales that occurred happened in The Northeast which accounts for just 12% of total transactions. Perhaps more worrisome is NAR’s Larry Yun noting “unsuitable price levels” as a reason for weak sales due to low inventories (despite inventories rising 1.6% in February?!). May be it’s time to blame The Fed… for not creating more rich people to buy more houses…

Another month, another miss…
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As Home Prices remain higher YoY….

*FEB. MEDIAN HOME PRICE RISES 7.5% FROM YEAR AGO TO $202,600
Northeast sales fells 6.5% MoM, The West rose 5.7% MoM with the The Midwest flat and South up 1.9% MoM.

NAR’s Larry Yun explains…

“Severe below-freezing winter weather likely had an impact on sales as more moderate activity was observed in the Northeast and Midwest compared to other regions of the country.”
but adds…

although February sales showed modest improvement, there’s been some stagnation in the market in recent months. “Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels,” he said. “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”

..

“Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”
And begs The Fed to not raise rates…

“With all indications pointing to a rate increase from the Federal Reserve this year – perhaps as early as this summer – affordability concerns could heighten as home prices and rents both continue to exceed wages,”

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U.S. DOLLAR COLLAPSE – Federal Reserve Speech Points Towards U.S. Economic Catastrophe

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What Happens After the U.S. Dollar Collapse

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One Last Look At The Real Economy Before It Implodes – Part 3

by Brandon Smith
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In the previous installments of this series, we discussed the hidden and often unspoken crisis brewing within the employment market, as well as in personal debt. The primary consequence being a collapse in overall consumer demand, something which we are at this very moment witnessing in the macro-picture of the fiscal situation around the world. Lack of real production and lack of sustainable employment options result in a lack of savings, an over-dependency on debt and welfare, the destruction of grass-roots entrepreneurship, a conflated and disingenuous representation of gross domestic product, and ultimately an economic system devoid of structural integrity — a hollow shell of a system, vulnerable to even the slightest shocks.

This lack of structural integrity and stability is hidden from the general public quite deliberately by way of central bank money creation that enables government debt spending, which is counted toward GDP despite the fact that it is NOT true production (debt creation is a negation of true production and historically results in a degradation of the overall economy as well as monetary buying power, rather than progress). Government debt spending also disguises the real state of poverty within a system through welfare and entitlements. The U.S. poverty level is at record highs, hitting previous records set 50 years ago during Lyndon Johnson’s administration. The record-breaking rise in poverty has also occurred despite 50 years of the so called “war on poverty,” a shift toward American socialism that was a continuation of the policies launched by Franklin D. Roosevelt’s ‘New Deal’.

The shift toward a welfare state is the exact reason why, despite record poverty and a 23 percent true unemployment rate (as discussed here ), we do not yet see the kind of soup lines and rampant indigence witnessed during the Great Depression. Today, EBT cards and other welfare programs hide modern soup lines in plain sight. It should be noted that the record 20 percent of U.S. households now on food stamps are still technically contributing to GDP. That’s because government statistics make no distinction between normal grocery consumption and consumption created artificially through debt-generated welfare.

This third installment of our economic series will be the most difficult. We will examine the issue of government debt, including how true debt is disguised from the public and how this debt is a warning of a coming implosion in our overall structure. National debt is perhaps one of the most manipulated fields of economics, and the layers surrounding what our country truly owes to foreign creditors and central banks are many. I believe this confusing array of disinformation is designed to discourage average Americans from pursuing the facts. Here are the facts all the same, for those who have the patience…

First, it is important to debunk the mainstream lies surrounding what constitutes national debt.

“Official” national debt as of 2015 is currently reported at more than $18 trillion. That means that under Barack Obama and with the aid of the private Federal Reserve, U.S. debt has nearly doubled since 2008 — quite an accomplishment in only seven years’ time. But this is not the whole picture.

Official GDP numbers published for mainstream consumption do NOT include annual liabilities generated by programs such as Social Security and Medicare. These liabilities are veiled through the efforts of the Congressional Budget Office (CBO), which reports on what it calls “debts” rather than on the true fiscal gap. Through the efforts of economists like Laurence Kotlikoff of Boston University, Alan J. Auerbach and Jagadeesh Gokhale, understanding of the fiscal gap (the difference between our government’s projected financial obligations and the present value of all projected future tax and other receipts) is slowly growing within more mainstream circles.

The Rest Of The Story Here

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Bailout is Back: Fannie and Freddie Likely Need “Additional Treasury Investment” After Derivatives Losses

Mac Slavo March 19th, 2015 SHTFplan.com

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There is trouble again for federal mortgage backers and bailout queens Fannie Mae and Freddie Mac, whose failures helped to trigger the housing market collapse and subsequent 2008 economic crisis.

The government enterprises are again turning their lowest profits since the recovery, thanks to derivative losses – where most of the mortgage lender money is invested:

Fannie Mae will make its smallest payment to taxpayers in more than four years after large derivatives losses crimped its fourth-quarter profit, the government-controlled mortgage financier said on Friday.

Fannie Mae said a drop in long-term interest rates sharply reduced the value of the derivatives contracts it uses as hedges in financial markets, adding that low capital buffers are raising the risk it could need taxpayer money in the future.

The derivatives losses helped reduce quarterly profit to $1.3 billion, about 80 percent less than a year earlier, and the $1.9 billion check that Fannie Mae will cut for the Treasury in March will be the smallest since the second quarter of 2010.

Regulators are concerned that the problems leading up to the previous housing crisis are being repeated. Former Federal Housing Finance Agency director Ed DeMarco said:

“In the past year or so we’ve actually seen a renewed policy focus on questions regarding access to credit, which can risk repeating the approach that contributed to the financial crisis—that being the government’s rather vigorous concern about expanding access to credit. That’s not to blame the conservator, whoever it is, it is pointing out the consequence of having a lack of legislative action and having these two companies continuing to operate in conservatorship.”

Behind the scenes, losses are being socialized, while profits are being privatized as usual.

With growing perils, Fannie and Freddie are again looking towards a possible bailout, and the likelihood of a short term Treasury infusion of cash. Reuters reported:

“Future profitability is far from assured,” Federal Housing Finance Agency Office of Inspector General said in a report, pointing out that the firms could again chalk up losses on their derivatives portfolios, similar to those they reported in the fourth quarter.

“(This) increases the likelihood of additional Treasury investment,” the report stated.

Exactly how much the bill will be is not yet clear.

Last time there was a bailout, taxpayers were on the hook for nearly $200 billion, with some $116 billion directed into Fannie Mae and another $71.3 billion injected into Freddie Mac. Those amounts have since been repaid, but the larger problems have hardly been averted.

The reconfiguration of rules for managing Fannie and Freddie since 2008 have kept it from maintaining any significant cash reserves, and in turn put investors money in the hands of derivatives – illusive vehicles indeed, here today, gone tomorrow. Leaving a big, black hole.

Investment Research Dynamics pointed out the inherent fraud in the system, again, set up to fail and burden the lowly and powerless taxpayer:

Similar to when Fannie was plugged full of derivatives under former CEO Franklin Raines … the Government has once again looked the other way while Wall Street unloaded another avalanche of derivatives onto FNM/FRE. Once again the Taxpayers will pay for this.

This is not a ‘warning” – this is a “get ready here it comes” statement. The fact is that most of FNM/FRE’s “profitablity” has been driven by the same fraudulent “mark to model” accounting that has generated most the big bank profits since 2009.

And the Government used this fraudulent accounting to suck money out of FNM/FRE. The “improved” balance sheet has enabled both FNM/FRE to issue debt to investors. The money raised has been used reload their mortgage holdings and for dividend “payback” payments to the Treasury.

Things are teetering, teetering, close to the edge, and ready to collapse into another round of chaos… anytime now, I guess.

A more interesting question would be: who is quietly profiting from its brewing trouble?

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Rothschild Power: Fact Or Fiction

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There Is No Way Around It: “The Manner In Which We Live Today Is About To Drastically Change”

Posted on March 16, 2015 by Brandon Smith

One Last Look At The Real Economy Before It Implodes – Part 2

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Consumer spending in the U.S. accounts for approximately 70 percent of gross domestic product, though it is important to note that the manner in which “official” GDP is calculated is highly inaccurate. For example, all government money used within the Medicare coverage system to pay for “consumer health demands,” as well as the now flailing Obamacare socialized welfare program, are counted toward GDP, despite the fact that such capital is created from thin air by the Federal Reserve and also generates debt for the average taxpayer. Government debt creation does not beget successful domestic production. If that was a reality, then all socialist and communist countries (same thing) would be wildly enriched today. This is simply not the case.

That said, the swift decline in manufacturing jobs in the U.S. over the past two decades, including a considerable 33 percent overall decline in manufacturing jobs from 2001 to 2010, leaves only the consumer and service sectors as the primary areas of employment and “production.” The service sector provides about three out of every four jobs available in America, according to the Bureau of Labor Statistics.

The truth is that America actually produces very little that is tangible beyond Big Macs, pharmaceuticals and the occasional overpriced fighter jet that doesn’t function correctly and is filled with Chinese parts. All three will kill you at varying degrees of speed…

In the first part of this article series, I discussed the true state of global demand, along with the unstable situation within numerous indicators from exports to retail. Swiftly falling global demand for raw materials as well as consumer goods is an undeniable reality. This is a distinct problem in terms of the U.S., which has been, up until recently, the primary consumption driver for much of the world. As I plan to show, U.S. demand is about to fall even further into the abyss as real unemployment and personal debt take their toll.

Now, it is probably important to address the lies presented in the mainstream and by the BLS in terms of unemployment statistics because even after years of alternative analysts debunking establishment stats and how they are calculated, we STILL end up hearing the same arguments parroted by disinformation agents and unwitting useful idiots.

Such people continue to parade around boasting about the latest BLS reports on job creation claiming that “all is well” because the unemployment rate has dropped to 5.5% and all other talk to the contrary is “doom and gloom.” So, once again, I must relate the fact that the current BLS numbers are an utter sham.

Official unemployment stats are arrived at through disingenuous methods of calculation that were introduced in the 1990s, just before the bursting of the dot com bubble; the introduction of artificially low interest rates, which created the derivatives crisis; and the steady derailment of the U.S. financial system, which has occurred ever since.

The Rest Of The Story Here

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