Mortgage Modification Whistleblower: Banks Manipulate Process To Limit Loan Mods (VIDEO)
(UPDATE: Full video of ABC's report added below)
According to an employee of one of the country's largest financial institutions, facilitating mortgage modifications for struggling homeowners is not a priority at his bank, where he says he has not seen the completion of a single loan modification in the last year.
The employee, who opted to remain anonymous because he feared he could lose his job, told ABC News that mortgage-modification applicants are frequently directed to an 800 number that the bank uses to evade and delay their requests.
As the HuffPost's Shahien Nasiripour has reported, the Obama administration's mortgage modification program has been beset with problems since day one. The $75 billion program was intended help up to 3 to 4 million homeowners by 2012, but has fallen mightily short. Last month, a top Treasury Department official suggested that the administration's goals for the plan might never be reached.
David Muir's full interview with the whistle-blowing bank employee airs tonight on "World News with Diane Sawyer." Watch a preview below (or check out their full story here):