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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 had a home loan through boa I applied for the modification was given all wrong info like no you don’t have to make payments untill decision then it’ll be put on the back of your loan.. I found out when I owed 12000.00 that she was wrong… so I busted my but pd the 12000.00 over 3 months charged all kinds of fees… then they left it in their Escow.. for over a yr while still charging late fees.. it took me to write attorney general over banks to force them to apply it to my loan they still had over a 1000.00 of my money in it when I finally got the results of modification it was only to freeze my apr… so they screwed me.. am I eligible for this action? I finally after all the bs gave it back…
They say I owe more now on my loan than when I first got it. That was in 1998 for $150,00. Now they say I owe $175,000 after paying for 20 years. I cannot get anyone to explain. They also posted to my credit 3 missed payments; we have the cancelled checks for the payments but they posted them to something else and will not fix the problem so my credit is low. Who used a good attorney against them idiots? Thanks.
when do we get our money? i m in group 2 how much money will i get barb
I’m patiently waiting to BARB! Frustrating there’s no one to call to find out how much you recieve!!! Very grateful even if it’s 5$ though!!!
I am patiently waiting too. But when you got your letter it said how much I was getting and what group I was in.
Patiently waiting too… I did receive notice but not an amount. Cam I ask where on the postcard it stated an amount? Maybe I missed something? Is it just a percentage? Thanks for any information…
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.
Can you advise as to the approximate amount of payments? The i nfo is confusing
I just want to know now that the appeal is dismissed, when will checks start to be sent out.
Following and what is the expected approximate amount ?
The settlement agreement states that the settlement shall be funded within 30 days of the Effective Date, with checks being mailed 30 days after the funding. The timing is estimated, based upon the settlement administrator completing the claims review process. Top Class Actions will let our viewers know as soon as we learn that checks are in the mail!
Which date is the Effective Date? Is it the date of the original settlement of March 23 or is it the date of the dismissal of the last appeal?
The dismissal date of the last appeal is the estimated Effective Date.
the appeal has been dimissed. I am in Class 1 …….does anyone have any idea how much we are getting? 10% of interest paid??
Following
Does anyone know how many class actions members in group 1 and 2?
I am Thomas Washington III and I reside at 2141 Diamond Avenue in Barstow, California. I was delinguent in paying my mortgage for a few months but, I have remitted all late payments and applicable fees without resolve. Seven thousand and five hundred dollars were rendered to Bank of America without resolution. Instead, the Bank has sent my account to collection agencies. I am suing Bank of America this year, and I will invite the media to broadcast the court proceedings.
I’m in the same boat now. I’ve been trying to reconfigure a HELOC for 2.5 yrs. after the first year I was told nothing could be done, since ainwas not delinquent. Now I’m delinquent. What kind of attorney did you contact?
we want our money do you have a date? barb
There has been an appeal filed. It is in the red update section above!
Has a date for the appeal been scheduled?
I did a modification with BOA, and they did a do a refinance, they rewrote the deed description and included land that was NEVER listed in the original loan and filed it with the modification. I lost my job last July and have been working diligently trying to save my home, only now that Nationstar has it, do I find out how I’ve been screwed by BOA. WHt recourse do I have. I’m not in the class action….