To all consumers debating getting involved in a HAMP program. DON’T DO IT!
The below letter was sent to the Maryland Attorney General’s Office detailing Bank of America’s (BOA) fraudulent activities involving my HAMP mortgage modification. The Attorney General’s Office stated they would not handle this case and would forward my documentation to the US Federal Trade Commission, Bureau of Consumer Protection. Several weeks later, I was contacted by Bank of America who advised that they had received my documentation from the FTC and would follow up on my complaint. So basically, the company BOA that I’m complaining about has all my supporting documentation. They have insisted everything is in order but cannot explain the escrow irregularity and refuse to provide a matrix of how they arrived at my payment and fee amounts. No state or federal government entity cares about these issues. Put me in with any class action lawsuit filed against Bank of America. My request for HAMP was based on a brief period of unemployment.
Attorney General’s Office Maryland
Consumer Protection Division
200 St. Paul Place, 16th Floor
Baltimore, Maryland 21202
September 13, 2012
To whom it may concern,
This four page cover letter is seeking your assistance in reference to our submission # 218675. I am convinced that Bank of America (BOA) is committing fraud against me and HUD FHA. The listed time line is provided for your reference. Please see attached, BOA FHA HAMP Trial Period documentation, dated 9/25/10. BOA Completion of Trial Period Plan, dated 4/20/11 and BOA pending approval for permanent modification dated 8/21/12. Also attached are mortgage statement and escrow balance sheets. Thank you in advance for help in this matter.
Original Monthly Loan Amount $2091.78
Based on BOA’s own HAMP calculator, using my income and debts, my payments should have been $1, 691.00
On 7/20/2010. Made initial call for modification
On 8/5/2010. Submitted required info via fed ex. With letter notice of new job with no pay stubs yet. Attached notice of pay rate pending stubs.
On 8/27/2010. Called to get fax Number to send two pay stubs. Sent two pay stubs via fax.
On 9/3/2010. Called BOA in underwriting, send another current bank statement. Needed current bank statement sent via fax. Three statements sent total. Assigned to Francis Thompson.
On 9/15/2010. Todd said in underwriting.
On 9/22/2010. Jessica stated nothing changed call back in a week.
On 9/23/2010. BOA letter stated denied because of date. Received on 9/24/2010
On 9/25/2010. Terri spoke with Marneesa, stated we were approved for MHA will receive 3 month trial period info in 2 to 3 weeks.
Approx. 10/6/10. Received FedEx letter from BOA stating we were eligible for the FHA Home Affordable Modification. Returned requested documents to BOA prior to due date of 10/25/2010. Letter stated to begin making three month trial period Payments of $2, 095.84 on 11/1/10, 12/1/10 and 1/1/11. All payments were made on the due dates.
Call BOA regularly after the trial period and was told our case was in underwriting.
On 4/20/11, received FedEx packet from BOA stating you have successfully completed the trial period plan. We completed the packet which required us to agree to having $15, 147.44 as a second loan for the modification. We had paperwork notarized and returned to BOA prior to May 20, 2011 deadline. Also included first modified payment of $2, 056.46 with the documentation.
Continued making monthly payments as required since 11/1/10 and called regularly about the status of the modification. Advised paperwork has not been finalized.
Currently payments are being made monthly for $2, 056.46
On 8/10/11, we received a letter by USPS from BOA advising us to contact a BOA customer assistance center to schedule an appointment with a counselor. The enclosed documentation requested by BOA is the same documentation they requested and received a year ago. No appointment was made with BOA.
From August 11, 2011 to present, I continued making routine calls to BOA concerning finalized modification and have spoken to the following people.
Received letter dated August 31, 2012, from Bank of America advising that our mortgage modification is near finalization and requested we sign, notarize and date the attached agreement. After reviewing the documents I noticed several errors. I immediately call Bank of America and spoke with Kenneth Brown and advised him of the errors and made him aware I would not sign them due to these errors. Mr. Brown advised me after I sign the papers the statements would straighten themselves out. I advised him I was not comfortable signing with these errors. I explained to Mr. brown the errors that I found and They are as follows:
1. I explained to him that our payment is 2056.00 and for the last 23 months our statements are saying 2477.75. Why and When did our payment increase to 2477.75? After speaking with Kenneth he stated that in October 2010 our payment was changed to 2, 477.75..I asked him why was our payment changed Our taxes and Homeowners Insurance did not change so how could my payment go up by $421.75 a month. He did not have an explanation and explained to me that after we sign the papers our statements would reflect correctly. I explained to him I was not satisfied with this explanation and who else could I talk to..He advised me he had a meeting at 9 am and he would run it by his boss. I did not hear back from Kenneth that afternoon so I called him back and asked if he found out anything. He advised me he spoke with his manager and they sent it up to Underwriting to check for errors. I advised Kenneth that this matter would have to be rectified in 3 days because the Modification due date is September 15, 2012. He advised me he would call probably the end of the week.
2. The Modification Paperwork has the following errors:
In the partial claim amount section it claims that we will owe FHA 18, 293.26..It list 4 months of arrearages at 9, 911.00, This divided by 4 equals 2, 477.75, If you will note this IS NOT the modified amount OR ANY prior mortgage amount…This amount was created at the time the FHA HAMP Trial Period started…All the other fees are based off of the incorrect monthly mortgage amount! It reflects past due interest at 4, 748.26. It shows and past due escrow 6, 472.09. and other deferred amounts totaling 4, 662.70. This is all stemming from BOA changing our payment when we applied for modification.
Prior to the Modification as you will see in the attached statements our escrow payments prior to modification were 453.49 a month. Once we agreed to the trial plan the escrow monthly payment increased to 839.46. There is no reason for this increase. There has routinely been a positive escrow balance. Why would they all of a sudden double this.. Even the most recent mortgage statement reflects an escrow balance of 4, 313.34. Also this same statement reflects unapplied funds which is money we have paid 5, 748.09.. Obviously the unapplied funds balance is large because BOA expected us to pay 2, 477.75. So with them changing this payment for no reason and not continuing with the modification amount they considered each modification payment as insufficient…BOA can not answer why my payment went from 2, 056.00 to 2, 477.75 after filing for a modification. I think I know why the mortgage amount changed. BOA gets reimbursed quickly by HUD FHA in the full amount of the partial claim amount. The higher BOA got the partial claim amount the more money they make. So by making up a bogus payment amount they get more immediate government funds. Of course, they don’t care if the math is not correct, I’m the one having to agree to pay HUD FHA back on a subordinate note. It was a pretty clever idea BOA had. They knew we would pay the agreed modification amount of 2095.84 while they claimed our mortgage payment was 2, 477.75. This would always show us as being behind and not paying the full mortgage amount. On their end it looked like they were paying overage costs and escrow deficiencies and absorbing late fees. This was clearly done to defraud me and HUD FHA.
In Closing, I was looking for mortgage assistance and desire to keep my home. BOA is trying to force this modification down my throat and sign the paperwork with any fraudulent numbers they provide or face foreclosure. In the end, my initial mortgage payment was 2, 091.00 at George Mason Mortgage (see attachment) and then sold to BOA at the same rate and payment schedule. The new modified mortgage amount is 2095.84 (see attachment). But according to today’s phone call with BOA the new payment will be 2, 105.00 This is a scam without a doubt.
I appreciate the assistance of the Attorney General Office. I and most other consumers cannot deal with this corporation alone. I can speak with you at any time.
Name and Address Removed.