Bank of America hits back over whistleblowing claims

Bank Of America Building

Bank of America said former workers who alleged the firm awarded bonuses for sending homeowners into foreclosure misrepresented their roles and made 'impossible' claims about the lender’s assistance program.

Bloomberg News reports that the ex-employees, whose sworn statements were filed last month in a lawsuit against the bank, had limited roles that didn’t allow them to understand the full scope of efforts to assist distressed borrowers, the bank said Friday in documents in federal court in Boston.

The former employees’ 'wild misrepresentations about their roles lead to impossible claims about what they did and saw', Bank of America said. They 'could not have witnessed what they claim to have witnessed because they were not in a position to do so and would not have witnessed such things in any event because Bank of America’s actual practices were diametrically opposite'.

Bank of America is being sued by homeowners who claim the company didn’t comply with the government’s Home Affordable Modification Program. The borrowers said in court filings last month that the bank instructed employees to stall mortgage-modification applications, lie to customers and falsify documents.

The bank is seeking to block the plaintiffs’ efforts to proceed on behalf of a class of homeowners.

Hit the link below to access the complete Bloomberg article:

BofA Says Ex-Workers Made Impossible Loan-Program Claims

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