Bank of America Faces Wrath of God

(MoneyWatch)  Count people of faith among those offended by Bank of America's (BAC) indifference to homeowners facing foreclosure.

PICO National Network -- a nationwide group representing Catholic, Protestant, Evangelical Christian, Jewish, Muslim, Buddhist and other denominations -- in a Feb. 18 letter to B of A CEO Brian Moynihan accused the banking company of showing "complete disregard for the widespread human suffering caused by Bank of America's actions." Added PICO member Rev. Lucy Kolin in the letter:

We are extremely disappointed that Bank of America has elected not to make any meaningful changes to its foreclosure prevention and community investment policies and practices.... More disturbing is the lack of any sense of urgency demonstrated by your staff about the gravity of this crisis.

A PICO spokesman told me last week that meetings with B of A execs to discuss its poor mortgage modification record had gone nowhere. After nine months of participation in a federal mortgage relief program, the company has permanently altered loans for only 1 percent of more than 1 million eligible borrowers. On average, B of A is four times less likely to modify a customer's loan than other mortgage servicers, according to the group.

PICO is also vowing to show up at B of A's Feb. 23 shareholder meeting to air their concerns.

Moynihan, who's new to the CEO hot-seat at B of A, faces a public relations nightmare unless he fulfills his own pledge to improve the company's loan modification efforts. More and more homeowners are behind on their loans, and foreclosures are expected to spike.

B of A has an easy choice here -- does it want to be with the angels on this one or on the other side?

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