BofA Accused of Rolling USA for $900 Million

(CN) – Bank of America falsely certified that its home modification loans complied with federal laws in order to reap more than $907 million in government incentive payments, a man claims in a qui tam lawsuit in Federal Court.
Michael J. Fisher, of Southlake, Texas, says in his False Claims Act lawsuit that he worked for four years – 2008 through 2012 – assisting attorneys in securing mortgage loan modification for their homeowner clients.
The complaint was filed under seal in March in Manhattan Federal Court and unsealed this month.
Fisher claims to have reviewed hundreds of loan modification contracts from Bank of America and other lenders. He says he noticed a pattern of violations of the Truth in Lending Act.
Specifically, he claims, Bank of America consistently failed to inform the borrowers of their right to rescind their request for a loan modification.
Section 1635 of the TILA “requires notice of the borrower’s right to rescind consumer credit transactions in which a security interest is retained or acquired in property that will be the borrower’s principal dwelling, until midnight of the third business day after consummation of the transaction or delivery of the TILA rescission forms, whichever is later,” the complaint states.
It continues: “Written acknowledgement of any required TILA disclosure creates only a rebuttable presumption of delivery. Refinancings with no new advances, but the same creditor and secured by the same property, and certain other transactions are exempted from the rescission provisions.” (Citations omitted.)
Fischer adds: “The actionable conduct alleged as unlawful herein involves transactions which were not exempted from the rescission provisions.”

Read on.

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