BofA Tries To Block Class-Action Lawsuit

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BofA Tries To Block Class-Action Lawsuit

BofA Tries To Block Class-Action Lawsuit

Bankers and Tradesman-

Bank of America moved to block a potential class-action suit in federal district court yesterday, saying the plaintiffs had failed to produce evidence of widespread abuses.

The case before U.S. District Judge Rya Zobel in Boston involves claims by several homeowners who sought loan modifications from Bank of America under the federal Home Affordable Modification Program (HAMP), an initiative introduced by the Obama administration in 2009 to help distressed homeowners keep their homes.

Lawyers for the plaintiffs allege that Bank of America deliberately lied, stonewalled, and mislaid documents in order to prevent homeowners who were successfully completing trial modifications from qualifying for permanent mods, enabling the bank to foreclose instead.

[BANKERS and TRADESMAN]

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