According to Bloomberg’s best Bank of America Corp., the second- largest
lender by assets, must face claims by homeowners that it took kickbacks from
private insurers, a judge ruled.
U.S. District Judge Berle Schiller in
Philadelphia denied the bank’s request to
toss the lawsuit because the statute of limitations had expired on the claims.
Homeowners who sued should have the opportunity to develop their argument that
the claims should be allowed because the bank intentionally concealed its
behavior, Schiller said in a ruling yesterday.
homeowners sued the Charlotte, North Carolina-based bank last year claiming
it’s pay-to-play reinsurance scheme cost borrowers $284.7 million between 2004
and the end of 2011. That’s the amount Bank of America allegedly collected from
private mortgage insurers as its share of insurance premiums for referring
borrowers, according to the complaint….