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This settlement is closed!
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Bank of America NA has agreed to pay $29 million to settle a class action lawsuit alleging it breached promissory notes underlying certain FHA-insured home loans in violation of Federal Housing Administration regulations.
If you prepaid an FHA-insured loan with Bank of America on a day other than the first of the month, you may be entitled to a cash payment from the class action settlement.
On Mar. 31, 2016, plaintiff Veronica Dorado filed the class action lawsuit against Bank of America, alleging the bank breached the promissory notes underlying FHA-insured home loans by collecting post-payment interest without providing an FHA-approved payoff disclosure to borrowers who made a pre-payment inquiry, request for payoff figures, or tender of prepayment.
Post-payment interest is the interest collected by a lender after the borrow has paid the full principal of the loan. According to the Bank of America class action lawsuit, lenders may collect post-payment interest for the remainder of the month in which full payment is made, but only to the extent permitted by FHA regulations.
“Defendant Bank of America, N.A. has a systematic practice of collecting ‘post-payment’ interest on loans insured by the Federal Housing Administration without first complying with the uniform provisions of the promissory notes and the FHA regulations governing these loans,” Dorado alleges in the BofA class action lawsuit.
“As a result, Bank of America has collected hundreds of millions of dollars in post-payment interest in an unlawful manner,” the class action lawsuit asserts.
Bank of America denies the allegations but agreed to settle the FHA-insured loan class action lawsuit to avoid the expense and uncertainty of ongoing litigation. The class action settlement was preliminarily approved on Dec. 7, 2016.
Class Members who would like to opt out of or object to the BofA settlement must do so no later than Feb. 6, 2017.
Who’s Eligible
Class Members of the BofA settlement include: “Any person who had a FHA-insured loan for which (i) the loan was originated between June 1, 1996 and January 20, 2015; (ii) one of the Releasees (as defined in the Settlement Agreement)—as of the date the total amount due on the loan was brought to zero—was the lender, mortgagee, or otherwise held legal title to the note; (iii) one of the Releasees collected interest for any period after the total amount due on the loan was brought to zero (i.e., BANA collected ‘post-payment interest’); and (iv) one of the Releasees collected post-payment interest during the statute of limitations period applicable for the loan.”
Group 1 Class Members include those who, in response to an inquiry, were sent information about post-payment interest on a certain form. Group 2 Class Members include those who were not sent information on the form in response to an inquiry.
Potential Award
Varies, depending on a number of factors, including whether the Class Member belongs to Group 1 or Group 2, and the total number of Class Members who participate in the BofA settlement. Class Members will receive a refund of a percentage of the amount of post-payment interest collected with the paid-off FHA-insured mortgage loan.
Proof of Purchase
N/A
FAQs
Claim Form Deadline
N/A. Class Members who do not opt out of the BofA settlement will automatically receive payment.
Case Name
Dorado v. Bank of America NA, Case No. 1:16-cv-21147-UU, in the U.S. District Court for the Southern District of Florida
Final Hearing
3/23/2017
UPDATE: On March 24, 2017, the Bank of America FHA-Insured Loan class action settlement was granted final approval by the court. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
UPDATE 2: On April 19, 2017, an appeal to the Bank of America FHA-Insured Loan settlement was filed. Claims will not be paid until all appeals are exhausted. We appreciate your ongoing patience. Top Class Actions will continue to provide updates as we learn more.
UPDATE 3: On June 5, 2017, the appeal to the Bank of America FHA-Insured Loan settlement was dismissed. According to the settlement website, payments will occur in the next several months. Top Class Actions will continue to provide updates as we learn more. Keep checking back and let us know when you receive a check in the comments section below or on our Facebook page.
UPDATE 4: On July 14, 2017, the settlement administrator announced that checks were mailed to eligible Class Members. Let us know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
Claims Administrator
Dorado v. Bank of America
c/o Garden City Group (GCG)
P.O. Box 10340
Dublin, OH 43017-5540
1-866-990-9556
Class Counsel
Steven Rosenwasser
BONDURANT MIXSON & ELMORE LLP
Defense Counsel
Allen Burton
O’MELVENY & MYERS LLP
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179 thoughts onBank of America FHA-Insured Loan Class Action Settlement
I believe Bank of America set out to steal our home! We had perfect credit but my husband was injured at work and we fell one payment behind. By the time B of A was done with us a year later our. Refit was in shambles. They were trying to force us to sign over our home with over $100,000 in equity. It was the most horrible high pressure experience I have ever had! They claim to have put us through the Obama refi stuff but we owe more then ever now with a 40 year loan!! My husband is 60!!! I think they took the obami regi kept it and put the house into one of their loans at the same time. I have often thought of trying to get a lawyer to look at what they did. To top it off they didn’t have the paper on the house it was in the title mess too.
We have gone thru a similar ordeal, in 2008 I was injured in a auto accident my spine was severely damaged and I was left disabled for life unable to work. We filed BK chap 7 in 2010 moved out of the house and they still have not foreclosed ? It’s crazy all these yrs . I think they can’t find the title or deed because they were involved in that scam on Wall Street the house has been vacant all these yrs and it’s still in our names in spite of a be chap 7 .
Melvin J Debro
I had a loan with BA from 2007 until, they sold it to greentree, and then it was sold to Ditect , Am I eligible
My home was foreclosed on October 2013. My address 612 N Clarendon Avenue Southport, NC 28461
my loan was sold by bank america in the bailout but my payments increased over time to almost the same
Connie Thomas what do I do next to join suit.
11885 Cruden day rd. 80831
We had a home financed with BOA from 11/2007 to 8/26/2016. Our address was 322 Fisher Lake Road, Lyman, SC 29365 and we now live at 1 Brookstone Court, Wellford, SC 29385. While we lived at 322 Fisher Lake Road, Lyman, SC we re-financed twice. Our names our Sharon Humphries and John S. Humphries. Our current phone #’s are home[864-485-2012] and our cell is (864-3843348).
Would we be eligible?
We had a home loan from 11/2007 to 8/26/2017. We are not sure if it was an FHA, and we refinanced twice.
We sold this property 322 Fisher Lake Road, Lyman, SC 29365 on 8/26/2017 and moved to 1 Brookstone Court, Wellford, S 29385. When we paid the house off at 322 Fisher Lake Road, we did not get any interest knocked off for paying if off early. The last time we refinanced with BOA they did lower our payments, but stuck a 40 year loan on us. We thought it was one of those Mortagage Relief Assistance Programs. It took us a while to realize that they had extended our loan to 40 years. As soon as the value came up on our house we sold it and bought this one in Wellford. We got a 3.75 interest loan for 30 years, which knocked off about 7 years on our previous loan and payments are a lot lower. The latest Truth In Lending Disclosure Statement’s loan # was 203382721 which was dated 6/12/2009 from Bank of Amercia.
Our names are Sharon and John Humphries and our home phone is 864-584-2012 and our cell phone is 864-384-3348. Would we be eligible?
,Looks like BANA sold mortgages constantly… I guess we can see why???? Mine was sold and all my taxes were negative the money never transferred to the new holder. I have written to BANA and they give some garbage story. I want my monies back and then BANA should pay the all the crap they have caused people. We wonder why there are homeless people. When our mortgage keeps increasing and they just say it’s our taxes, my taxes never increased. Maybe we can ask Trump to look into the banking issues with mortgages.
i had a loan with boa and it was sold to countrywide and then to nationstar.
BofA and country wide were doing some shady dealings bundling home loans and selling them to investors on wall st. Our home loan was caught up in there scam they still can’t forclose because they can’t figure out where or what happened to the deed or title! We went BK chap 7 in 2010 and here it is 2017 and it’s still in our names it’s a night mare. I m disabled with a spine injury from 2009 car accident that’s how we fell behind in our house payments,BK chap 7 was our only way out. Everyone do not deal with B of A for anything they are the biggest crooks on the planet.
I had a loan with bank of America 2008. My loan was sold to nationstar would I be eligible
I had a loan with BOA 2008. It was sold to Nationstar 2014 would I be eligible
Bank of America has stolen and mislead so many families. I never had my loan decreased. It’s all false. The Obama bail out,was just a scam. Nothing changed. They still sold are loans and then hiked up our payments.