BofA Should Face Foreclose Probe by TARP, Waters Says

Bank of America Corp., the second-biggest U.S. lender, should be investigated for its treatment of distressed homeowners, said Representative Maxine Waters, the top Democrat on the House Financial Services Committee.

Employees say the lender told them to delay applications to the Home Affordable Modification Program, or HAMP, to increase fees and send customers into foreclosure, Waters wrote today in a letter to the watchdog for the U.S. government’s bailout program. She cited a June 14 Bloomberg article based on court documents in making the request.