Monday, April 15, 2013

BofA Faces Claims Over Kickbacks

According to Bloomberg’s best Bank of America Corp., the second- largest U.S. 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.

Three Pennsylvania 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….

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