BofA Forced Excess Flood Coverage Purchases: Suit

Law360, New York (June 30, 2011, 8:01 PM EDT) -- Bank of America NA was hit with a putative class action Wednesday in Florida for allegedly forcing property owners to buy excess flood coverage as a condition for mortgage loans, sometimes buying insurance directly from a subsidiary and adding the premium to loan balances.

BofA and subsidiary BAC Home Loans Servicing "unlawfully required plaintiff and class members to purchase or maintain flood insurance on their property in excess of the amounts required by federal law, the borrowers' loan agreements and defendants' secured interest in the property,...
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