“We recommend the Government pursue aggressive legal action on behalf of consumers,” Vito Torchia, Jr., Brookstone Law, PC
Newport Beach, CA (PRWEB) October 11, 2011
A Housing and Urban Development (HUD) Regional Inspector General’s recent recommendation that legal remedies be pursued against Bank of America by the Federal Government will be effective for homeowners suffering in the foreclosure crisis if the lender’s request for a six-figure settlement is rejected, according to Vito Torchia, Jr., managing attorney of Brookstone Law, PC.
According to media coverage, an audit of the Bank’s Countrywide unit by HUD that revealed the lender submitted faulty data to back up claims for reimbursement on federally insured mortgages and did not exercise due diligence in underwriting loans. The audit revealed half of the loans reviewed had “material underwriting deficiencies” resulting in more than $720,000 in losses, according to the Department of Housing and Urban Development.
“We recommend the Government pursue aggressive legal action on behalf of consumers,” said Vito Torchia, Jr. “It is possible that the Bank will be allowed to get away with repaying only $720,000, which would be unfair to the thousands consumers who have lost their homes due to the Bank’s lack of due diligence. We hope the Federal Government will reject Band of America's claims that these problems were isolated and rare.”
Media coverage noted that HUD’s inspector general identified 4,050 Countrywide loans originated from 2008 to 2009 that were at least 60 days overdue within their first six mortgage payments.
“That the Bank calls their consistent ignorance of due diligence a matter of a few oversights is outrageous,” said Vito Torchia, Jr. “They should ask thousands of homeowners affected unjustly by the foreclosure crisis and lost their homes if they think wrongfully losing their home is just an oversight.”
The U.S. said in May it may pursue other firms after suing Deutsche Bank AG for more than $1 billion accusing the firm of lying to the FHA while arranging mortgage insurance.
“It is not surprising that Bank of America has lost more than half its market value this year after so many claims about defective loans and wrongful foreclosures,” said Vito Torchia, Jr. “Those who don’t have effective legal counsel are likely not to find relief.”
ABOUT BROOKSTONE LAW, PC
Headquartered in Newport Beach, Calif., and with offices in Los Angeles, Calif., and Ft. Lauderdale, Fla., Brookstone Law, PC is a law firm comprised of attorneys with experience and success in business, corporate and personal finance, employment, entertainment and media, art and museum, intellectual property and real estate law. The firm has a network of more than 40 affiliate attorneys nationwide and employs highly trained specialists, paralegals, paraprofessionals and administrative staff dedicated to serving clients. For information, call (800) 946-8655 or visit http://www.BrookstoneLaw.com (http://www.brookstonelaw.com).
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