Bank of America Rejects RFIs and Electronic Signatures Class Action

Homes tend to be the largest purchases people make in their lives, so difficulties with mortgages are significant. The Real Estate Settlement Procedures Act (RESPA) tries, among other things, to ensure that borrowers can receive all the information they need promptly. The complaint for this class action alleges Bank of America, NA (BANA), does not provide information as required by RESPA and does not accept borrowers’ electronic signatures, as also required.

The class for this action is all persons in the US who have or had a mortgage with BANA and who, between January 20, 2018 and January 20, 2021, have asked for copies of audio recordings or transcripts of phone calls between themselves and BANA, pursuant to the laws, and who have been refused access to them.

Under RESPA’s Regulation X, mortgage loan servicers must provide certain loan information to borrowers if they ask for it through a Qualified Written Request (QWR) or a Request for Information (RFI).

If a servicer, like BANA, receives a QWR or RFI from a borrower, it must respond within thirty days in either of two fashions: (1) It must provide the requested information, or (2) It must make a “reasonable search” for it and then tell the borrower in writing why it is not available.

A commentary on Regulation X explains that information may be declared “not available” in two instances: if it is “not in the servicer’s control or possession,” or if it “cannot be retrieved in the ordinary course of business through reasonable efforts.”

In this case, BANA was the servicer for plaintiff Cory Robinson’s mortgage. Robinson sent BANA a Notice of Error and RFI, on July 20, 2020, saying that BANA’s calculation of the amount he owed on his mortgage was incorrect. It asked for certain documents related to his account and “a copy of any and all recordings of [Robinson] or any other person concerning [Robinson’s] account.”

BANA’s response, dated August 10, did not provide any of that information. The complaint quotes from that response: “We’re committed to protecting the confidentiality of our customer’s information and we require written authorization from the customer before we disclose any information…. The customer’s signature(s) must be a ‘live’ signature, not a digital signature.”

Robinson and his lawyer repeated their requests and statements three more times, and BANA replied similarly each time, insisting on a “live” signature. To date, Robinson has not received the information he requested.

Under the Electronic Signatures in Global and National Commerce Act, mortgage servicers must accept them from borrowers. The complaint quotes the Act as saying that “a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Bank of America Rejects RFIs and Electronic Signatures Complaint

January 20, 2021

Homes tend to be the largest purchases people make in their lives, so difficulties with mortgages are significant. The Real Estate Settlement Procedures Act (RESPA) tries, among other things, to ensure that borrowers can receive all the information they need promptly. The complaint for this class action alleges Bank of America, NA (BANA), does not provide information as required by RESPA and does not accept borrowers’ electronic signatures, as also required.

Bank of America Rejects RFIs and Electronic Signatures Complaint

Case Event History

Bank of America Rejects RFIs and Electronic Signatures Complaint

January 20, 2021

Homes tend to be the largest purchases people make in their lives, so difficulties with mortgages are significant. The Real Estate Settlement Procedures Act (RESPA) tries, among other things, to ensure that borrowers can receive all the information they need promptly. The complaint for this class action alleges Bank of America, NA (BANA), does not provide information as required by RESPA and does not accept borrowers’ electronic signatures, as also required.

Bank of America Rejects RFIs and Electronic Signatures Complaint
Tags: Mortgage-Related Unfair Practices, RESPA, Rejects Electronic Signatures, Servicing Your Mortgage