Fed: BofA 'Significantly Hindered' Foreclosure Probe

June 14, 2011

Federal regulators are accusing Bank of America Corp. of being slow to provide documents and other information in an investigation into the banking giant’s foreclosure practices, according to a court filing.

BofA "significantly hindered" the review, said departmental auditor William Nixon in a document that was filed in a lawsuit by the State of Arizona against the bank.

"When interviews were permitted, the presence or involvement of the bank's attorneys limited the effectiveness of those interviews," Nixon said in the court filing.

Federal regulators and state attorneys have been investigating banks’ procedures for foreclosures after reports surfaced last year of banks using “robo-signers” to sign hundreds of unread foreclosure documents daily without proper reviews.

BofA spokesperson Dan Frahm disputes the claim that the bank has not cooperated with regulators.

"We provided on-site and follow-up access to more than 55,000 pages of material and we voluntarily coordinated interviews and assisted with arranging depositions with two dozen employees," Frahm told Reuters News.

Source:“Bank of America Hindered Foreclosure Review-Filing,”Reuters News (June 13, 2011)