$250M Settlement Over Bank of America Mortgages

bank of america mortgages settlement

$250M Settlement Over Bank of America Mortgages

A settlement of $250 million has been proposed in a class action lawsuit filed against Bank of America and Countrywide Financial Corp by mortgage borrowers who claim that the two companies participated in a real estate appraisal scheme. The plaintiffs in this case allege that the defendants did not give out independent appraisals in conformity with ethical rules set forth by the Uniform Standards of Professional Appraisal Practice.

The Bank of America class action lawsuit was initiated after a former LandSafe Appraisal Services Inc. (LSA) manager named Kyle Lagow filed a sealed complaint against Countrywide, LSA, and Bank of America for damages under the False Claim Act. After the complaint was unsealed, Lagow settled the action and a seperate class action was subsequently filed by borrowers.

“The Settlement confers substantial relief for Class members who will automatically receive a refund check for a percentage of the appraisal fees they paid, without having to complete a cumbersome claim form, answer any questions or provide any documentation,” the motion for preliminary approval of the Bank of America class action settlement states.

The settlement Class includes all residents of the United States who made a mortgage loan application to Countrywide from Jan. 1, 2003 through Dec. 31, 2008 and who used LSA as an appraisal company. Settlement class members will receive checks in the amount of at least 22 percent of the appraisal fee that was assessed in connection with their home loan application.

Case Details

The Bank of America Class Action Lawsuits are Waldrup v. Countrywide Financial Corp., et al., Case No. 2:13-cv-08833, and Williams, et al. v. Countrywide Financial Corp., et al., Case No. 2:16-cv-04166, both in the U.S. District Court for the Central District of California.

HT: Law360


6 thoughts on “$250M Settlement Over Bank of America Mortgages

  1. This is disturbing: the amount doesn’t even repay amount for the bogus appraisal, nor does it throw a dime at the extra interest we paid for a property that was over valued in 2003.

    We will get approximately $100.00.

    • Why do you think you will get $100? I am laughing. The settlement amount is $250 million before the lawyer, the administrators, and the named plaintiffs get thier cut. The remainder will be maybe 150 million, and there are 2.4 million plaintiffs. You are looking at $62 at best.

      Just to let you know, many of the plaintiffs are NOT supposed to be in the class. I did not use landsafe, so I am technically NOT a class member, but I still received the same postcard you did along with thousands of others who will get a cut of your settlement.

  2. Pingback: Recap: Apple Agrees To $500 Million Settlement, Skynest Coach Beds & More - Doctor Of Credit

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