Bank of America fined $45 million for Abusive Foreclosure

A bankruptcy judge issued a $45 million fine against Bank of America Corp. , calling the bank’s treatment of a California couple who fought to save their home “brazen” and “heartless” and should have added the words “illegal”, “fraudulent” and “unconscionable”.

Judge Christopher Klein of the U.S. Bankruptcy Court in Sacramento said the bank’s mortgage modification process and mistaken foreclosure on Erik and Renee Sundquist’s home left them in “a state of battle-fatigued demoralization.”

The case brings renewed attention to the mortgage industry’s loan servicing business. Klein alluded to systemic problems, saying the bank had little incentive to alter the mortgage terms and “kill a goose that keeps laying 6% golden eggs,” referring to the interest rate that the bank collected.

 

 
The fine money, earmarked mostly for law schools and consumer advocacy organizations, is meant to be large enough that it won’t “be laughed off in the boardroom as petty cash or ‘chump change,’” Klein said in the ruling, published Thursday. “It is apparent that the engine of Bank of America’s problem in this case is one of corporate culture…not rogue employees betraying an upstanding employer,” he added.

An expanded version of this report appears on WSJ.com.

To read the entire opinion go here: sundquist-opinion

4 Responses

  1. wow. SO WHO GETS PAID? I successfully proved BoA criminal racketeering with over 4 dozen bar card members of unregistered LLC’s who tried to steal my DEEDED lands, title and Estate – but hey’ when they OWN the black robes – its we the people being ROBBED by “goobermint” and ALL their Goons. I say lets start hanging judges and lawyers. Point Blank. No Mercy.

  2. I think, homeowner must be given damages if a servicer or bank forecloses their home illegally.

  3. We fought with B of A over and over about a mod that they told us would help us after my work was under from the failing economy and my job/company I worked for closed. We hired a very good attorney that put the bank in the crosshairs. The damage to my brain from the high blood pressure of dealing with B of A just about put me down for good. We were now making things work and Bank of America sold our loan to a company called Seterus and they played around a bit also. My wife and I still have post traumatic stress just talking about it.

  4. Semper Fi. We need to keep things circulating and find more brave, honest attorneys to step up the fight and help all of us American property owners. Old Brian Moynihan of Bank of America needs to go to jail in my hunble opine and many of us have the proof to put him there.

    We just need good legal minds, title companies, and some people with money willing to help and support us.

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