A lawsuit filed in connection with the handling of mortgages by Bank of America Corp (NYSE:BAC) has not been granted class action status. That’s according to a ruling from a federal judge in Boston.
Mortgage suit against Bank of America spans 26 states
Don Jeffrey and Janelle Lawrence of Bloomberg claim that mortgage holders in 26 different states claimed that Bank of America Corp (NYSE:BAC) mismanaged their loan requests. The claims were made in connection with the Home Affordable Modification Program, also known as HAMP. The plaintiffs were attempting to achieve class action status for their cases, which had been consolidated in Boston.
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The judge in the case said although the claims made by the plaintiffs may have merit, “they rest on so many individual factual questions that they cannot sensibly be adjudicated on a classwide basis.”
Bank of America participates in HAMP
Bank of America Corp (NYSE:BAC) is one of many mortgage lenders which take part in HAMP. The program is meant to keep home purchases from going into foreclosure. The homeowners who filed their suits said they made all of the trial payments that were required under the plan but did not end up getting either written denials of their eligibility for a loan or the permanent loan modifications they were requesting.
U.S. officials decided to pursue civil suits against Bank of America and other firms on Wall Street late last year in connection with HAMP. The government claims they used the program to push mortgage holders into foreclosure. Former employees of Bank of America said they were forced by the bank to do it.
The bank has been in hot water over its mortgage-backed securities for some time amidst accusations that it loaned money to people who realistically never could have paid the money back. It was revealed last month that the Department of Justice was filing civil charges against Bank of America in connection with those securities.