$250 Million Settlement Proposed for Bank of America Class Action Lawsuit
A $250 million settlement has been proposed in a class action lawsuit filed against Bank of America and Countrywide Financial Corp over an alleged real estate appraisal scheme. The Bank of America class action lawsuit was initiated after a former LandSafe Appraisal Services Inc. manager filed a complaint against Countrywide, LSA, and Bank of America for damages under the False Claim Act.
The plaintiffs in this case say that the defendants did not give out independent appraisals for mortgages in conformity with ethical rules set forth by the Uniform Standards of Professional Appraisal Practice. A website was set up in March 2019 after a judge certified the class action lawsuit against the defendants.
In addition to a $250 million settlement fund, the deal includes an $2.5 million in settlement administration costs, according to the motion for preliminary approval of the settlement.
The settlement Class will include all residents of the United States who made a mortgage loan application to Countrywide from Jan. 1, 2003 through Dec. 31, 2008 and who used LSA as an appraisal company.
The motion notes that settlement class members will receive checks in the amount of at least 22% of the appraisal fee that was assessed in connection with their home loan application.
Class Members will receive class postcard notice of the settlement utilizing their last known contact information, which will also be confirmed by the settlement administrator.