HOMEOWNERS SUE BANK OF AMERICA FOR NONDISCLOSURE OF PRIVATE MORTGAGE INSURANCE

Blue Stephens & Fellers LLP and the Law Office of James C. White, P.C. have filed a proposed class action lawsuit against Bank of America, alleging that from 2007 through 2009, the bank fraudulently marketed its deceptively-named No Fee Mortgage Plus (NFMP) loan product to borrowers across the country.  

The lawsuit, filed on behalf of two families who acquired NFMP loans, alleges that the Bank, through its marketing materials and loan documents, falsely claimed that NFMP loans would not be burdened with any form of private mortgage insurance.  The named plaintiffs learned that Bank of America covertly purchased lender paid mortgage insurance (LPMI) policies on their homes without their knowledge or consent when they attempted unsuccessfully to refinance their NFMP loans.  The plaintiffs allege that the LPMI premium costs have been passed along to them in the form of higher interest rates, making the bank’s promise of “no fees” completely false.

The plaintiffs also allege that by failing to disclose and, in fact, hiding its purchase of LPMI, Bank of America violated the Homeowners Protection Act of 1998, which requires lenders to disclose, among other things, the existence of and process by which a borrower may cancel LPMI.  

The class action lawsuit seeks to represent anyone who acquired a home loan from or through Bank of America under the No Fee Mortgage Plus program.  If you have information that you believe is important to the case, please contact Dhamian Blue at (919) 833-1931 or send e-mail to info@tbsf-law.com.