Investigation and pending class action lawsuit against Bank of America claiming the banking giant refused to honor agreed-upon rate modifications on home loans to first mortgage borrowers.
The class action lawsuit claims Bank of America offered a special "no fee rate modification plan" to compete during the height of the home loan market. The plan allowed first mortgage borrowers the opportunity to negotiate a lower interest rate once a year over the life of the loan, if market rates dropped.
After the recent housing and lending crisis, rates dropped and plan participants approached Bank of America for rate changes. The class action lawsuit claims Bank of America stonewalled and gave various excuses as to why people didn't qualify, ultimately refusing to live up to its promise to the lower interest rate.
The class action lawsuit represents loan recipients who were eligible for the no rate fee modification plan and did not receive a lower interest rate.
Name (Stock Symbol)
Bank of America N.A. (BAC)
Bank of America N.A. is one of the largest banks in the world offering a complete menu of financial services to consumers and businesses worldwide.
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