BofA (BAC) Unit to Refund $36M of Mortgage Servicing Fees Under FTC Settlement
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A mortgage servicing subsidiary of Bank of America Corp. (NYSE: BAC) agreed to settle Federal Trade Commission charges that it illegally assessed more than $36 million worth of fees against struggling homeowners, in violation of an earlier settlement with the FTC.
Bank of America subsidiary BAC Home Loans Servicing, LP has already reversed or refunded $28 million worth of improper fees for title and other default-related services charged to homeowners behind on their mortgages. The new settlement requires BAC Home Loans to reverse or refund the remaining $8 million in improper fees.
BAC Home Loans, which did business as Countrywide Home Loans Servicing, LP before it was acquired by Bank of America in 2008, agreed to the FTC settlement in conjunction with a $25 billion, Global Civil Settlement that Bank of America and the four other largest U.S. banks reached with the U.S. Department of Justice and state attorneys general to resolve allegations of abusive foreclosure practices.
As part of the Global Civil Settlement, the FTC will release all five banks, their subsidiaries, and employees from liability under the FTC Act for loan origination or servicing practices before the Global Settlement.
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Bank of America subsidiary BAC Home Loans Servicing, LP has already reversed or refunded $28 million worth of improper fees for title and other default-related services charged to homeowners behind on their mortgages. The new settlement requires BAC Home Loans to reverse or refund the remaining $8 million in improper fees.
BAC Home Loans, which did business as Countrywide Home Loans Servicing, LP before it was acquired by Bank of America in 2008, agreed to the FTC settlement in conjunction with a $25 billion, Global Civil Settlement that Bank of America and the four other largest U.S. banks reached with the U.S. Department of Justice and state attorneys general to resolve allegations of abusive foreclosure practices.
As part of the Global Civil Settlement, the FTC will release all five banks, their subsidiaries, and employees from liability under the FTC Act for loan origination or servicing practices before the Global Settlement.
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