Bank of America Class Action $250M Deal Reached

A $250 million settlement has been proposed in a class action lawsuit filed against Bank of America and Countrywide Financial Corp by mortgage borrowers who claim that the two companies participated in a real estate appraisal scheme.

The plaintiffs in this case allege that the defendants did not give out independent appraisals in conformity with ethical rules set forth by the Uniform Standards of Professional Appraisal Practice (USPAP).

The Bank of America class action lawsuit was initiated after a former LandSafe Appraisal Services Inc. (LSA) manager named Kyle Lagow filed a sealed complaint against Countrywide, LSA, and Bank of America for damages under the False Claim Act. After the complaint was unsealed, Lagow settled the action and a seperate class action was subsequently filed by borrowers.

A website was set up in March 2019 after a judge certified the class action lawsuit against the three defendants.

“The Settlement confers substantial relief for Class members who will automatically receive a refund check for a percentage of the appraisal fees they paid, without having to complete a cumbersome claim form, answer any questions or provide any documentation,” the motion for preliminary approval of the Bank of America class action settlement states.

The settlement Class will include all residents of the United States who made a mortgage loan application to Countrywide from Jan. 1, 2003 through Dec. 31, 2008 and who used LSA as an appraisal company.

The motion notes that settlement class members will receive checks in the amount of at least 22 percent of the appraisal fee that was assessed in connection with their home loan application. 

As part of the terms of the settlement, Class Members will receive class postcard notice of the settlement utilizing their last known contact information, which will also be confirmed by the settlement administrator. In addition, settlement members will also receive notice through publications, such as newspapers, and internet banner ads, which will provide them the opportunity to object or opt-out of the proposed settlement.

The motion for preliminary approval states that “All Settlement Class members who do not opt-out of the Settlement Class will be subject to a release of their claims against Defendants related to appraisal fees paid in connection with appraisals performed by Defendants during the class period.”

The consumers also note that class counsel and the settlement class representatives have satisfactorily represented the interests of the class in negotiating the proposed settlement.

According to the Bank of America class action settlement motion, the class counsel could continue to prosecute the claims to conclusion but any monetary recovery would come many years in the future and would be at a far greater expense.

In addition to a $250 million settlement fund, the deal includes an $2.5 million in settlement administration costs, according to the motion for preliminary approval of the settlement. Additionally, each class representative in this class action lawsuit will be petitioning the court to receive service awards in an amount not to exceed $15,000. Attorneys fees will be paid to the class counsel in an amount not to go over 25 percent of the settlement amount, says the motion.

Did you obtain a mortgage from Bank of America? Leave a message in the comments section below.

The plaintiffs are represented by Christopher R. Pitoun and Steve W. Berman of Hagens Berman Sobol Shapiro LLP and Daniel Alberstone, Roland Tellis, Evan Zucker and Elizabeth Smiley of Baron & Budd PC.

The Bank of America Class Action Lawsuits are Waldrup v. Countrywide Financial Corp., et al., Case No. 2:13-cv-08833, and Williams, et al. v. Countrywide Financial Corp., et al., Case No. 2:16-cv-04166, both in the U.S. District Court for the Central District of California.

Read More Lawsuit & Settlement News:

Asbestosis vs Mesothelioma: What Can Cause Lung Cancer in Non Smokers?

Conair Hair Dryer Class Action Alleges Burns

Johnson and Johnson Baby Powder Recall: Is it Safe Yet?

LaCroix Class Action Withdrawn By Customers