Bank Of America Agrees To Pay Mortgage Borrowers $1.2 Million To Resolve Kickback Claims

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Bank Of America Kickback Scheme Class Action Settlement Overview: 

• Who: Bank of America has agreed to pay $1.2 million to resolve claims it participated in a yearslong kickback scheme with Genuine Title LLC, a mortgage title company. 
• Why: The plaintiffs allege Genuine Title paid BOA illegal kickbacks in exchange for assignments and referrals.
• Where: The class action lawsuit was filed in Maryland federal court.

Bank of America (BOA) has agreed to pay $1.2 million to resolve claims it participated in a kickback scheme with Genuine Title LLC, a mortgage title company. 

The settlement is the result of claims that Genuine Title paid BOA illegal kickbacks in exchange for the assignment and referral of residential mortgage loans, refinances and reverse mortgages, according to a recent motion for preliminary approval.  

A nationwide class of borrowers of federal mortgage loans that were brokered or originated by BOA for Genuine Title was certified back in 2020. 

The scheme, which Plaintiff Tracie Parker Dobbin’s claims was intentionally concealed by BOA and Genuine Title, is alleged to have gone on from around January 2009 through 2014, according to Dobbin’s motion for preliminary approval. 

Class Members Should Receive 0.5-22 Times The Amounts They Originally Paid For Settlement Services

BOA has agreed to the settlement, which Dobbins says was agreed upon without any “collusion” between the involved parties. 

“Plaintiffs’ and BOA’s Counsel’s experience in realistically assessing the benefits of resolving the Litigation by settling, reflect an informed and vigorous arms-length negotiation,” the motion for preliminary approval states. 

Class members are scheduled to be refunded between 0.5 and 2.2 times the amounts they originally paid for settlement services, in addition to various fees which BOA has agreed to pay in addition to the $1.2 million. 

Plaintiffs claim they are requesting preliminary approval since “no case is foolproof” while also acknowledging that continuing litigation would inherently carry risk. 

The class action lawsuit had previously been dismissed against BOA but was later revived by the Fourth Circuit following an appeal, according to the motion.

BOA continues to deny all of the allegations against it, including a violation of the Real Estate Settlement Procedure Act, despite agreeing to the settlement. 

A separate class action lawsuit was filed against BOA last month by a consumer alleging the company charged improper fees on home mortgage loan accounts that were delinquent. 

Do you believe you were a victim of an alleged kickback scheme between Bank of America and Genuine Title? Let us know in the comments! 

The plaintiffs are represented by Timothy F. Maloney and Veronica B. Nannis of Joseph, Greenwald & Laake, P.A., and Michael Paul Smith and Melissa L. English of Smith, Gildea & Schmidt, LLC. 

The Bank Of America Kickback Scheme Class Action Lawsuit is Dobbins, et al. v. Bank of America N.A., et al., Case No. 1:17-cv-00540, in the U.S. District Court for the District of Maryland.

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