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.
To read the entire opinion go here: sundquist-opinion