Bank of America Informative - Limitations of Titanic Mortgage Servicers
PLANO, TEXAS -- I must say that all the complainants in this website are venting their frustrations in hopes that somehow their grievances will be heard, understood and acknowledged (HUA! in the military jargon)
The common thread, I suspect, is the titanic nature of certain mortgage companies such as Countrywide Home Loans (CHL or CFC) but now Bank of America Countrywide (BAC). Not only in the mortgage industry, but any other company that becomes exceedingly gigantic, we all know how inefficient and cumbersome they become in providing quality customer service and how their operations become fragmented as they must contend with an ever-increasing high employee turnover due to higher output demands by management.
There is an abundant audio and audiovideo documentation provided by various Bank of America employees showing how all the problems within BAC become disabling by its employees and its contracted employees. Although this disclosure by BAC employees is highly unethical and possible grounds for immediate termination, I suspect that these employees want to prove beyond any reasonable doubt that their complaints are BASED ON FACT. I do not believe (and many BAC employees will agree with me) that BAC will not solve its myriad of operational problems by hiring MBAs or other high degreed professionals to find solutions. BAC does not have to force its employees to take mandatory overtime or work through lunch breaks or work on weekends to achieve higher production output. BAC employees need work like everyone else during this DEEP RECESSION and they will not complain or say they have family or religious obligations out of fear of being "Let Go." This creates an internal animosity among BAC employees towards its own employer BAC. According to some other current employees, there is a continuing drug and alcohol use problem and the Plano Police Department still receives call from BAC employees on the sly and the Plano Police Department sends its K-9 units to the parking garage. The Plano Police state that their policy does not allow them to arrest anyone because the vehicles are in private property but they do take the license plate numbers down and they post an officer's car near the vicinity on Legacy or Corporate Drive and wait for a traffic violation by any driver whose license plate has been listed as having potential drugs by the K-9 unit.
A documented example of how Titanic companies like BAC become inefficient and fragmented is illustrated by the following.
Bank of America purchases Countrywide Home Loans and decides to have its own loan documents SCANNED electronically along with Countrywide's loan documents. The problem is the physical immensity of the combined BAC and CHL file load and the employees performing these duties are forced to work harder and harder and get more done by upper management. The employee is physically tired as they attempt to get as much scanned as is physically possible within an 8 or 10 hour day. As the boxes continually pile up, the manager gets the impression that work is not being done and complains to the manager in charge of the scanning project. The manager in charge of the scanning project is also frustrated and decides that if the boxes are OUT OF SIGHT, they are OUT OF MIND to his/her manager and then advises his/her employees to take all the boxes to the docking station when the Iron Mountain document shredding truck is in. If there are no imposing boxes to be seen by upper management, then there are no complaints and everyone feels relieved that they can perform a better job with a lower box count and everyone is happy.
There is only one problem, the original documents are shredded and destroyed before they are scanned into the system. In this case, hopefully all the homeowners have kept their own mortgage documents to VERIFY and PROVE that they did in fact purchase and own their home.
There are rampant problems and challenges in almost every department with titanic companies like BAC, AT&T, Verizon, Chase, and any other company that anyone can think of that has become so mammoth that it naturally becomes absolutely inefficient, ineffective, and .
I am convinced that any company can find the answers to its problems within the ranks of its own employees as long as its employees have a core understanding of the problems and possess the maturity to implement a reasonable action plan with the correct metrics.
As a former Countrywide employee for several years, I have seen all the problems that arise as a company becomes large and whose goal, at that time, was to be the biggest mortgage company by achieving the one trillion dollar mortgage portfolio and then on to the two trillion dollar mortgage servicing portfolio and so on. The problem is analogous to the Titanic. Like the Titanic, the upper management in the marble floors at the top only want the big ship Titanic to go faster and faster but they do not see the sweat and blood (and fatal heart attacks) that occur in the engine room. The working atmosphere in several departments is one of micro-management where every employee is carefully watched and scrutinized and thereby making everyone feel like they were "walking on eggshells" as everyone would commonly say.
I have been able to compile all the issues and challenges in several three-ring binders as a learning tool. The reason for this is simple. If there is a problem or if you ever have a complaint about any policy or procedure within your company, you should write down the complaint or problem and investigate ways that the problem may be resolved for everyone. You can then provide your findings to upper management who may ignore your concerns or take them into consideration and let you know why your solution may not be workable.
Among the thousands of lawsuits against Countrywide and now Bank of America, many were due to inefficiency issues involving missing or misapplied payments, military allotments, ACH debit errors, credit report errors, lost overnights, check requisitions, zero coupon issues, wires, speedpay issues, Western Union payments, bank errors, previous servicer issues, setup issues, check log issues and all these may result in no payment to the mortgagor's account which will result in a rubber-stamped automatic foreclosure because the missing payment can never seem to get resolved ON TIME because the Homeowner/Mortgagor keeps sending a copy of their bank statement to PROVE that they have made a payment but the work overload keeps their account from being credited on time.
The simple problem was that there was not enough people to research these issues fast enough and every correspondence we received from attorneys or the various courts around the U.S. was several weeks old and the judgment was always against Countrywide and now Bank of America and included exorbitant punitive damages.
I believe the disclosure of these facts are important to stress the massive financial problems large titanic companies face when they grow to large without the foresite to create the appropriate workforce to anticipate and deal with the predictable problems that arise.
At this point, I am still contacted by current employees with Bank of America (BAC) who inform me about the ever-increasing problems that occur at BAC. I suspect that they simply need to vent their frustrations and miss my company. I cannot advise them since I am not aware of their departmental procedures but I do let them know that they should learn what they can and try to articulate their concerns on paper (computer) and try to find answers. If their superiors do not want to hear their proposed solutions to problems, then just remember that in an exceedingly high-volume work environment, their superiors are also under immense stress.
It is just absolutely abhorent and ridiculous that so many hundreds of thousands of homeowners/mortgagors whose payments become missed or misapplied, perhaps through no fault of their own, get enormous fees assessed and then, no matter how many times they submit PROOF OF PAYMENT, the mortgage company cannot property and timely credit their account. It is amazing that there will always be an average of $37 million dollars of Unidentified funds on a daily basis but the mortgage company will defend itself by saying that this is just "peanuts" compared to its $2.4 trillion dollar mortgage servicing portfolio. This is like saying those mortgagors with the unidentified funds of $37 million dollars are expendable or not worth consideration.
If any mortgage company CANNOT SERVICE its mortgage account holders with timeliness and accuracy, it should divest itself of its portfolio count until it can pay and retain good qualified employees. Mortgage servicing companies should be more strictly regulated. Although there are many loan types that mortgage companies must service and this may add to the complexity of the servicing task, it really is a simple task making sure that payments are made in a timely fashion and answering homeowner questions about their escrow account or discrepancy issues and providing counseling or workout issues to bring their account current.
There are simply Limitations with Titanic Mortgage Servicers such as Bank of America Countrywide (BAC) and perhaps BAC needs to downsize to a reasonable company that can provide efficient mortgage servicing to its business partners and mortgagors.
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