Bank of America Still Violating Loan Modification Agreements Even after Court Settlement

Tuesday, February 05, 2013
(graphic: SEIU)

Bank of America has been accused of violating the terms of a multi-billion dollar mortgage settlement before it has even been approved.


Two years ago, BofA reached an $8.5 billion settlement to resolve claims over mortgage abuses by Countrywide Financial, which it acquired during the 2008 financial crisis.


That settlement has yet to be approved by a federal judge, and now three Federal Home Loan Banks and Triaxx, an investment vehicle that bought mortgage securities, have filed court documents claiming the deal, among other things, has shortchanged thousands of investors.


In addition, the documents say BofA has continued questionable loan-related practices and put its own interests ahead of investors while modifying troubled mortgages.


The bank also failed to purchase bad mortgages in full once it had lowered the payments and principal on the loan—which is reportedly a violation of its agreements with investors who bought the securities that held the mortgages.


“The filing raises new questions about whether a judge will approve the settlement,” The New York Times wrote. “If it is denied, the bank would face steeper legal obligations.”

-Noel Brinkerhoff


To Learn More:

Fresh Questions Over a Bank of America Settlement (by Gretchen Morgenson, New York Times)

Bank of America Gets Away with Paying $10.3 Billion to Settle Foreclosure Fraud Case with Fannie Mae (by Noel Brinkerhoff, AllGov)

U.S. Finally Sues Bank of America for Mortgage Fraud (by Noel Brinkerhoff and David Wallechinsky, AllGov)

Bank of America Smacked with Foreclosure Fraud Lawsuits (by Matt Bewig, AllGov)


Bill Black 5 years ago
B of A is just a bunch of greed and crooks on steroids pushing the dollars to the lobbyist to make it all "illegally" acceptable.
Jeff Gleason 5 years ago
How else are they going to pay mu buddy Eric Mozillo his large salary. He works at the branch in Pasadena on Lake Ave
Charlie Khoury 5 years ago
I wonder for how long are the regulators are going to let B of A fraud people? How many more people should get hurt, lose their homes, jobs, and lifetime saving before anyone steps in and stop B of A? There isn't any deterrent for B of A execs to laugh it to the bank while others are out in the street and the government is not doing anything about it.
Edgar Lee 5 years ago
So what else is new ? Just can't make stuff like this up ... They should all be locked up . Period .

Leave a comment