Home Inspection Fee Lawsuit Claims Mortgage Lender Violated Federal Regulations

A mortgage borrower recently filed a home inspection fee lawsuit against her lender, alleging that the lender wrongfully billed for a property inspection before foreclosure in violation of regulations and mortgage terms.

Plaintiff Gloria Tirado recently filed a class action home inspection fee lawsuit against Bank of America N.A., alleging that the mortgage lender wrongfully charges defaulting consumers for home inspections before a foreclosure. Tirado claims that this practice is in violation of mortgage terms and federal regulations.

According to this home inspection fee lawsuit, Tirado entered into a mortgage insured by the Federal Housing Administration in October 2010. In June 2012, she claims, the mortgage was assigned to Bank of America following a merger.

In May 2017, Tirado says she was served with the bank’s complaint for foreclosure, alleging that Tirado hasn’t paid her mortgage since November 2016. Since filing for foreclosure, the bank has allegedly continued to charge Tirado for property inspections for a total of $155 in fees.

In her class action home inspection fee lawsuit, Tirado claims that the bank’s actions are in violation of the Federal Housing Administration (FHA) mortgage insurance program. Under this mortgage insurance program, “once a property has been found to be occupied, no further inspections are required by HUD or authorized for reimbursement,” the complaint says.

“In other words, once a property subject to an FHA loan in default is found to be occupied, charges for inspection fees are not allowed,” Tirado claims in her class action home inspection fee lawsuit.

Tirado argues that, following the first property inspection, the bank should have known that Tirado has continuously occupied her house. By continuously charging Tirado for property inspections in account statements, she claims, Bank of America is allegedly in violation of FHA mortgage insurance regulations.

“In placing the inspection fees on the statements, [Bank of America] misrepresented to Tirado and the Class that these fees were authorized under the FHA mortgages and [Department of Housing and Urban Development] regulations, when [Bank of America] knew, or should have known, that the fees were not authorized,” the class action home inspection fee lawsuit claims.

Tirado seeks to represent three Classes for a variety of claims. Tirado seeks to represent two Classes of nationwide consumers who, within the last five years, have had an FHA insured loan with Bank of America and were charged inspection fees while still occupying the property. For the first Class, she brings claims of breach of contract; for the second class, she brings claims of unjust enrichment. Tirado also seeks to represent a Class of the same consumers who reside in Illinois and are protected under the Illinois Consumer Fraud Act.

The class action home inspection fee lawsuit seeks actual damages, restitution, disgorgement, punitive damages, court costs, and attorneys’ fees.

The Class Action Home Inspection Fee Lawsuit is Tirado v. Bank of America, Case No. 1:18-cv-05677, in the U.S. District Court for the Northern District of Illinois.

Join a Free Property Inspection & Broker Price Opinion Class Action Lawsuit Investigation

If you were in default on your mortgage in the last three years with one of the following banks, you may qualify to join this property inspection fee class action lawsuit investigation:

• Caliber Home Loans
• Flagstar
• Freedom Mortgage
• LoanDepot
• Quicken Loans
• U.S. Bank

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