BSF INVESTIGATES LENDERS THAT FAIL TO DISCLOSE LPMI

Blue Stephens & Fellers LLP is investigating complaints that Bank of America fails to disclose to its North Carolina borrowers the purchase of lender paid mortgage insurance (LPMI).  Mortgage insurance typically is required on any residential home loan that exceeds 80 percent of the property value.

While LPMI is paid "up front" by the lender, the cost is passed on to the borrower through a higher interest rate.  Therefore, federal law requires lenders to disclose to borrowers that (1) they may choose between lender or borrower paid mortgage insurance, and (2) choosing LPMI may result in a higher interest rate.

When LPMI is not disclosed, many borrowers do not learn that their loan is subject to a higher interest rate until they attempt unsuccessfully to refinance the loan.

If you have learned that you cannot refinance your home loan because you have LPMI, and were not told at or prior to closing that you purchased LPMI, we would like to hear from you.

Blue Stephens & Fellers LLP is a small, boutique, litigation law firm that was founded in 1976, and is based in Raleigh, North Carolina.  Our firm traces its history to the representation of underserved communities. This is a proud tradition that we continue today, predominantly through our plaintiffs' litigation practice and pro bono work.