Bank of America to Defend Racketeering Claims

(CN) — Homeowners can sue Bank of America for claims it feigned compliance with a mortgage assistance plan that was a condition of the bank’s $45 billion bailout in 2008, the 10th Circuit ruled Monday.
Bank of America hired Urban Settlement Services dba Urban Lending Solutions to administer its Home Affordable Modification Program, or HAMP.
The bank was required to participate in HAMP as a condition of receiving a $45 billion bailout from the federal government to shore up the bank’s bad loans during the 2008 financial crisis. The government also guaranteed $118 billion in potential losses at the bank.
HAMP required Bank of America to collect financial information from at-risk borrowers, and evaluate their eligibility for a loan modification that would allow them to pay a lower interest on their mortgage.
The program allowed eligible borrowers to enter a trial period plan to demonstrate their ability to make lower monthly payments, and permanently modified loans if the borrowers made regular payments.
But a class of homeowners led by Richard George say Bank of America and Urban conspired to obstruct and delay their HAMP loan modification applications.

Read on.

2 responses to “Bank of America to Defend Racketeering Claims

  1. Reblogged this on Deadly Clear and commented:
    ‘Bout damn time.

  2. Elaine Williams in Baltimore

    This is rich! Gonna watch this one. I wonder how BOA plans to wiggle out of this one. What a bunch of slime balls. These are some smart homeowners who kept meticulous records. Good for them. Most of us deer in the headlights hanging onto every promise made, believing and wanting so badly for a good outcome.

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