fbpx

Bank of America Unnecessary Property Inspections Class Action

On its first page, the complaint alleges that Bank of America, NA (BOA) “services home loans according to uniform practices designed to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” The practices at issue? Charging customers for multiple unwarranted “property inspections” and for unneeded force-placed insurance.

The complaint brings suit against BOA and Safeguard Properties Management, LLC, for violations of state laws and for engaging in a Racketeer Influenced and Corrupt Organizations (RICO) scheme to raise revenues “by conducting unfair and excessive property inspections whether they are needed or not…”

Loan servicers are bound in their duties by Fannie Mae and Freddie Mac guidelines, the terms of mortgage contracts, and/or laws and regulations.

The plaintiff in this case, Kimn S. Sullivan lives in a home in Palm Beach Gardens in Florida. She took over the property after a lien foreclosure action by the homeowners’ association. Because of this, she “acquired title to the Property subject to the previous owner’s first mortgage of record[,]” the complaint alleges.

The complaint claims that when she took over the property, she “contacted BOA to ascertain the amounts due and owing under the Mortgage and has at all times since diligently sought to reinstate, modify and/or pay[ ]off the Mortgage. Despite her repeated efforts, however, BOA refused to communicate with Sullivan and instead sought to foreclose the Mortgage by filing a foreclosure action…”

The complaint charges, “From May 17, 2010 through March 6, 2019, a period of 9 years, BOA and Safeguard ordered 100 drive-by property inspections of Sullivan’s home. In 57 of these inspections, the reports submitted reflect that the inspector could not gain access and complete inspection because the property was located in a gated community and the inspector was denied access by the guard.” Even so, Sullivan was charged for each such “inspection.”

“However,” the complaint alleges, “federal regulations … make clear that borrowers cannot be charged for property inspections unless the Lender—or Loan Servicer—has reason to believe the property is vacant.”

The complaint also raises issues around force-placed insurance on the property.

Two classes and two subclasses have been proposed.

  • The National Property Inspection Fee Class is all persons in the US or a US territory who were charged one or more property inspection fees through BOA automated loan servicing platform when they lived in the property to be inspected and BOA was aware that the property was inhabited.
  • The National Force-Placed Insurance Class is all persons in the US or a US territory who have or had a mortgage with BOA during the applicable statute of limitations who were charged for a force-placed insurance policy obtained by BOA or its affiliates, entities, or subsidiaries.
  • There is also a Florida Property Inspection Fee Subclass and a Florida Force-Placed Insurance Subclass.
Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Bank of America Unnecessary Property Inspections Complaint

May 7, 2021

On its first page, the complaint alleges that Bank of America, NA (BOA) “services home loans according to uniform practices designed to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” The practices at issue? Charging customers for multiple unwarranted “property inspections” and obtaining unneeded force-placed insurance.

Bank of America Unnecessary Property Inspections Complaint

Case Event History

Bank of America Unnecessary Property Inspections Complaint

May 7, 2021

On its first page, the complaint alleges that Bank of America, NA (BOA) “services home loans according to uniform practices designed to maximize fees assessed on borrowers’ accounts when they are behind on their payments.” The practices at issue? Charging customers for multiple unwarranted “property inspections” and obtaining unneeded force-placed insurance.

Bank of America Unnecessary Property Inspections Complaint
Tags: Forced Placed Insurance, Inspection Fees, Mortgage-Related Unfair Practices, Servicing Your Mortgage