WHAT A BUNCH OF _______________! (Fill in the word you want. As Colonel Potter on M*A*S*H used to say, "What a bunch of horse hockey.") There is no lawsuit by FHA against Bank of America. There is a lawsuit by FHFA (Federal Housing Finance Authority) against Bank of America and 17 others, but it is related the sale of bad loans to Fannie Mae and Freddie Mac. It has nothing to do with loan modifications. If you would like to read the lawsuit, it is HERE.I spent almost an entire day trying to get a straight answer. It isn't easy, and I used to cross examine people in court for a living! I still don't have an answer. This is what I've been told:
- The problem is widespread, and there is an entire department at BofA dedicated to problems with "delayed conversions" (That's the official name of this problem)
- No one knows how long it will take
- Until it is resolved, no information at all is being reported to the credit bureaus about the borrowers. In other words, even though they've made every payment on time, the credit bureau doesn't know that, so their credit score has not had an opportunity to get better
- The problems are not the fault of the borrowers, nor are there any deficiencies in the borrrowers' paperwork
- Miraculously (right at Christmas!) a manager I was talking to (okay, maybe I was grilling him) said he received an update on his computer last night! The update notice said the "audit" of the loan modification process was now complete, and BofA would begin manually processing all loan modifications in the pipeline and awaiting conversion to permanent modifications. The notice did not say how long that would take.
- The telephone number of the BofA legal department is a closely guarded secret and even I cannot find it, and I'm really good at that sort of thing
- At least two managers in the chain of command on this issue have no assigned telephone numbers and cannot be reached. Another manager has a phone number but she never answers her phone and her voice mail box is full.
- My blood pressure has gone up 50 points since starting my phone calls, and if I have a stroke and die, my husband is going to sue BofA for my death!
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