Shaheen tells Bank of America to stop misleading underwater homeowners

Sen. Jeanne Shaheen (D-N.H.) called on Bank of America Tuesday to communicate better with homeowners receiving relief under the National Mortgage Settlement.

In a letter to Bank of America CEO Brian Moynihan released on Tuesday, Shaheen said New Hampshire homeowners have voiced frustrations that Bank of America hasn't communicated critical information.

“The National Mortgage Settlement has the potential to be a powerful tool to reestablish the integrity of America’s home mortgage system and to restore the public’s faith in it,” Shaheen wrote. “I am sure you would agree that to achieve this potential, it is critical for Bank of America to take further action to ensure that the company provides timely, reliable and useful information.”

The National Mortgage Settlement requires the five largest mortgage lenders, which includes Bank of America, to help homeowners after authorities found that inaccurate documents were used in foreclosure proceedings to favor the banks. The agreement requires the banks to provide a total of $20 billion in debt relief to eligible borrowers and pay a $5 billion penalty.

Shaheen said her office has received complaints from more than 100 homeowners in her state.

“In the last year, my office alone has worked with over 100 New Hampshire homeowners who have struggled to obtain answers from your company as they attempt to avoid foreclosure,” the letter stated. “In one instance, an elderly couple has tried to work with Bank of America for over two years to modify their mortgage and stay in the home they’ve owned for 40 years; they have yet to receive a definitive response from your company.”

Shaheen said the bank’s actions are unacceptable and need to change.

“Bank of America’s lack of an effective system to convey essential information to struggling homeowners, demonstrated by the experiences of those like this couple, is unacceptable and I encourage you to act without delay to remedy this failure.”

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