Bank of America Lawsuit
Being a homeowner is one of the most substantial decisions you can make in life. When you go to a bank for assistance in obtaining or modifying a home loan, you expect to get fair treatment. If you received a home loan from Bank of America (BoA, BofA) on or before January 1, 2009, and applied for Home Affordable Modification Program (HAMP) modification for refinancing, this may not have been the case. You may be entitled to compensation for unfair business practices by Bank of America and may be able to pursue litigation.
The U.S. Department of Justice has found that Bank of America and its associates have been unfair in how they handled requests for refinancing through the federal government Treasury Department’s HAMP program under the Making Home Affordable (MHA) plan. Bank of America home loan professionals have admitted to denying, delaying, and lying to homeowners seeking loan modifications.
When HAMP was launched in 2009, Bank of America was the largest mortgage provider in the program. Being accepted into HAMP would have helped many homeowners who were trying to avoid foreclosure on their homes after the 2008 Financial Crisis. Bank of America received $45 billion in funds from the Troubled Asset Relief Program after the 2008 Financial Crisis, a bailout that helped the bank that in turn hurt its customers.
Those who applied for loan modifications through HAMP between 2009 and 2017 may be eligible for compensation. If you experienced loan modification delays or denials from Bank of American, please contact Pittman, Dutton & Hellums right away at (866) 722-0250 for a free consultation to see if we can help.
Latest Known Facts:
- Bank of America is accused of using many phony practices when dealing with HAMP application documents
This hurts applicants and contributed to the foreclosures of thousands of applicants’ homes. These negligent actions include: lying to customers about the status of their applications; denying that applications had been received; and failing to grant loan modifications to applicants who were deserving of them.
- Bank of America is accused of deliberately coordinating the efforts with their employees
Many former employees have come forward and confirmed Bank of America instructed them to engage in such unfair tactics. Employees who contributed to the foreclosures of homes were rewarded by the company, with some employees admitting they received a $500 bonus for placing 10 or more accounts into foreclosure in a designated month.
- Sometimes, application denials were carried out in what the company called a “blitz”
This was a mass denial process that declined up to several thousand HAMP modification applications at a time. Including applicants that had submitted documentation beyond a specific time frame.
- Bank of America profited from improperly charging fees on delinquent loans
The denial fo the HAMP forced homeowners to accept in-house modifications, which carried higher interest rates than the HAMP loan would have. Bank of American also promoted these practices due to the high number of applicants and inadequate staffing to keep up with demand.
- In 2016, a federal appeals court ruled that Bank of America conducted actions that force it to now face Racketeer Influenced and Corrupt Organizations (RICO) Act claims.
- In 2017, a California couple that was a victim of Bank of America’s HAMP practices was awarded nearly $1.1 million
In a lawsuit against Bank of America, after the couple had submitted nearly 20 loan modification requests that were either declared insufficient or lost. The couple foreclosed on their home and filed for bankruptcy in 2010. Bank of America was fined a total of $45 million for this lawsuit. Much of the fine will be given to law schools and consumer advocacy organizations.
Repeated Lawsuits Brought Against Bank of America
Bank of America has faced many previous lawsuits for the same issues involving the mishandling of home loan modification applications and other documents. Other lawsuits the bank has faced include:
- 2010, the states of Nevada and Arizona sued Bank of America for application mishandling
- 2012, Bank of America was part of a $25 billion settlement with bank regulators
- 2012, Bank of America settled a lawsuit concerning HAMP fraud, as well as passing on bad loans to the Federal Housing Administration
- Bank of America settled two other major actions by the federal government related to foreclosure, paying out victims in 2012 and 2013
These are just some of many injustices Bank of America has brought upon its customers. Bank of America customers who have experienced any fraudulent behavior by the bank are encouraged to contact us.
Get Free Bank of America HAMP Lawsuit Information
If you’ve felt the pain of applying for HAMP and being denied or strung along during the process, you may be a victim of fraudulent practices by Bank of America. You may have foreclosed on your home or experienced financial instability due to Bank of America’s illegal loan application process. Victims deserve justice, and we can help.
Please contact the Pittman, Dutton & Hellums team for a free consultation concerning Bank of America fraud and HAMP applications. You may be entitled to compensation. Call (866) 722-0250, or contact us here.
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