Bank of America (BofA), a trustee of Countrywide Financial, discovered some suspicious evidence after hiring an underwriting consultant to review some bad loans. The consultant examined a small sample, 786 loans out of 4,484 mortgages, and found that two-thirds of the sample of loans contained one or more violations of representations and warranties. Approximately 90% of those violations involved fraud or violations of Countrywide's underwriting guidelines. The nationwide deals were originally worth $424 billion and are now expected to lose about $100 billion. Bank of America estimates that the average defect rate nationwide is 36%. If investors don't accept BofA's $8.5 billion take-it-or-leave-it offer, the bank will place its national subsidiary in Chapter 11. Poor recordkeeping by all parties poses obstacle to prosecution and to the victory of disputes. David Federer (2013) argued that once the state passed a law making parties who committed fraud as part of a foreclosure process criminally liable, home foreclosures came to a virtual standstill . Relief is on the way if you owe more on your home loan than it's worth with Bank of America (BofA). BofA plans to give about $3 billion through the National Homeowners Retention Program in loan forgiveness to homeowners who need help. This program helps borrowers keep their homes. This improvement is in response to a court settlement regarding Countrywide Financial. BofA took over many of Countrywide's subprime mortgage changes after acquiring the company. BofA will provide up to 30% forgiveness to homeowners 60 days behind who owe more than 120% of the value of their home. The bank wants homeowners to take advantage of modifications that help them keep their homes and... middle of paper... upper-level managers don't report their fraudulent ways. Whistleblowers, like Eileen, were harassed, transferred, or fired by deceptive managers. Loan fraud, drug abuse and sexual harassment were revealed upon completion of the investigation. I think Ms. Foster should be reinstated at Bank of America/Countrywide because she has done nothing wrong. He exposed those who needed to be exposed and cleared his name in the process. Dylan Blaylock (2011, December 7) said that instead of accepting a payment of nearly $228,000 for his silence, Foster wanted to ensure that corrupt practices at Countrywide were exposed and that wrongdoers were held accountable. Foster filed a Sarbanes-Oxley Act whistleblower complaint with OSHA, challenging the legality of his firing. The Department of Labor ordered his reinstatement and $930,000 in compensation.