BofA Accused Of Driving Mortgage Borrowers Into Default

Law360, New York (December 6, 2011, 8:36 PM EST) -- A Bank of America Corp. home loan servicing division on Monday was hit with a putative class action in California federal court for allegedly charging mortgage loan borrowers unjustified penalty fees that eventually drove them into default.

The mortgage borrowers' complaint alleges that in late 2009, BAC Home Loans Servicing LP opened an impound account so the bank could pay the borrowers' property taxes and homeowner's insurance even though they were already meeting those bills. The bank then charged the borrowers with penalty fees due to the impound accounts, which sent them...
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