Judge wants government suit against BOA thrown out

by Adam Smith28 Mar 2014
A judge has argued that the government's suit against Bank of America over a bad mortgage deal should be tossed out.

Federal magistrate Judge David S. Cayer has issued a nonbinding ruling suggesting that the Justice Department lawsuit against Bank of America over mortgage backed securities sales be dismissed, The New York Times has reported. A Federal District Court judge in Charlotte, N.C. will decide whether to adopt to magistrate judge's recommendation or to allow the lawsuit to proceed.

In issuing the ruling, the magistrate judge said the Justice Department had failed to satisfy the requirement that BOA's misstatements about mortgage backed securities had materially affected the Federal Home Loan Bank's government regulator.

The New York Times reported that the outcome could embolden other financial institutions to press ahead in lawsuits brought by the government rather than seek settlements.

The DOJ said the agency had filed a notice of objections with the district court, The New York Times said. Meanwhile, a spokesman for BOA said the bank was pleased with the recommendation.


  • by Anna Datta | 3/28/2014 12:57:22 PM

    I am a real estate broker for over 25 years and wrong doings by Bank of America to borrowers is intolerable. They do mortgage frauds and bank frauds through their servicers GreenTree Servicing LLC, and BOA home mortgage servicing constantly. Any direct complaints made to Bank of America are never investigated. People are evicted from their homes constantly without reason. I am a recent victim of Bank of America mortgage fraud and bank fraud. My husband and I are senior citizens and paid off our home equity line of credit and received a full reconveyance of the lien, which Bank of America even recorded on our title. They claim through their servicer Green Tree that they sold the mortgage to a third party investor. We were evicted from our home being straight forward law abiding citizens. My husband with heart conditions and diabetes could not take it and died within seven days. This is the biggest tragedy of my life, I can relate to others. This was only a Home Equity Line of credit which was a bad mortgage from Countrywide. This is unbelievable. Now I am homeless and financially challenged retiree fighting for my existence. I needed help from the government to resolve these issues, but no one to look up to.
    I strongly believe that Bank of America must be severely punished for their wrong doings and frauds, there should be someone or some agency to help people like us. Attorneys are no good they suck up money and do nothing. If there is anyone in this forum who can render any help or give some directions, it will be really appreciated and life-saving.


Should CFPB have more supervision over credit agencies?