22 Jan Bank of America Sued Over Loan Insurance
Friday, January 14, 2011
Bank of America sued over loan insurance
Triangle Business Journal – by Chris Baysden
CARY – Already beset by a mountain of criticism over foreclosures and bailouts, Bank of America is facing a new issue raised by Triangle home buyers who claim the Charlotte lender bought mortgage insurance on loans it made to them without their knowledge.
A lawsuit filed in U.S. District Court for the Eastern District of North Carolina centers around “No Fee Mortgage Plus” loans that BofA started making around the country in 2007. The loans were marketed as a way for home buyers to obtain a mortgage without having to pay fees and without having to purchase mortgage insurance…
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“This becomes a weight around someone’s neck,” Jim White, one of the plaintiff’s lawyers, says of lender-paid mortgage insurance.