If you are an unfortunate victim of this crime, then you are encouraged to contact a trusted attorney who specializes in representing consumers who have been the victims of such acts. Details: In late August 2021, it was found that Countrywide Bank was conducting illegal activities in relation to the recording of home mortgage loans by its underwriters. In the countrywide mortgage lawsuit, the bank was charged with conspiracy, intentional misconduct, false advertising, and fraud for its actions.
- 1 The Bank of America Mortgage Litigation – An Explanation
- 1.1 As one of the many banking regulators contacts Bank of America, this is only the latest time the bank has been involved in a legal tussle with the federal government.
- 1.2 B of A Countrywide mortgage lender faces another legal challenge in the form of a lawsuit by the Office of the Comptroller of the Currency.
The Bank of America Mortgage Litigation – An Explanation
This cheating scheme by Countrywide contributed to the current housing crisis. The bank used software known as a recording system or an artificial intelligent recording device which was able to steal the personal information of home loan borrowers. As many as thirteen million borrowers were affected by this crime. The Bank of America/ Factionwide Mortgage Lawsuit impacts thousands of current and former borrowers. The Countrywide group-action lawsuit says that at around August 2021, it was found that an senior banking advisor formerly employed by Countrywide illegally stole confidential information of millions of customers from Countrywide’s records and sold or tried to sell these information to other companies.
The primary class members who are being sued are entitled to compensation for their losses and damages. The complaint states that these borrowers were the victims of fraud by Countrywide and their loss will be compensated by the United States government as a result of the charges. There are two class members who are being charged with the same crime as the victims. These are all borrowers who applied for home loans from Bank of America through Countrywide.
As one of the many banking regulators contacts Bank of America, this is only the latest time the bank has been involved in a legal tussle with the federal government.
The bank was heavily fined by the Senate Permanent Sub-committee on Banking and Currency for failing to foreclosure or in certain cases foreclosing homes owned by Countrywide. A separate probe by the Office of the Comptroller of the Currency found that Countrywide set aside billions of dollars in home loan assets in an effort to avoid foreclosure on its own home loans.
B of A Countrywide mortgage lender faces another legal challenge in the form of a lawsuit by the Office of the Comptroller of the Currency.
The OCC has charged the bank with fraudulently selling home loans to Fannie Mae and Freddie Mac. This charge is part of the government’s efforts to recoup funds that were illegally obtained from Fannie Mae and Freddie Mac. The government found that Countrywide set aside billions of dollars in home loans while purposely allowing some of those loans to remain unsold in order to meet with government demands that the two companies return the funds. This would allow the government to receive a larger tax break.
Both of the B of A’s face a lawsuit from the Office of the Comptroller of the Currency. The bank is being accused of improperly collecting fees from borrowers who applied for Countrywide mortgage loans in error. Another accusation is that the bank intentionally pushed borrowers into subprime mortgages in an attempt to inflate countrywide mortgage values, resulting in the borrowers losing their homes in foreclosure. Countrywide has counters that the charges are unfounded and that the lawsuit is politically motivated. In the end, it appears that many Americans stand to lose if the government attempts to impose new regulations on mortgage banking issues.