BofA forced to pay state in foreclosure settlement

by Justin da Rosa15 Jul 2015
Vermont will be paid $1.25 million by the Bank of Canada after the big bank failed to comply with state foreclosure laws.

“There were mediation attempts and agreements reached and for some reason, one way or another, one part of Bank of America didn’t know what other parts of Bank of America were doing,” Attorney General Bill Sorrell said of the bank’s activity following the federal case. “So people were being billed for higher amounts than what was provided in the settlement.

“These sorts of issues were specifically part of the complaints that the states had and the federal government had with Bank of America and others,” he continued. “We had this national settlement that they were to reform their procedures, and at the end of the day, they didn’t do what they were supposed to do.”

According to local Vermont publication, the VTDigger, the state will receive $1 million for dropping the claim and the additional $250,000 will be used to repay residents who make similar claims in the future.

And Sorrell isn’t the only attorney general cracking down on foreclosures.

New York Attorney General Eric Schneiderman vowed Tuesday to not allow any homeowners in his state to lose their homes.

“As long as I’m Attorney General no one is going to lose their home because they could not get to a lawyer,” Schneiderman said at a legal aid office that provides assistance to struggling homeowners, according to a New York Public radio station. “We fund almost 90 agencies all across the state to help New Yorkers stay in their homes.”



Is TILA-RESPA a good or bad thing long term?