What the Bank of America loan modification lawsuits were about

Between 2009 and 2016, Bank of America faced multiple class action lawsuits over how it handled loan modification requests from homeowners. The core complaint was that the bank lost documents, failed to respond to modification requests within required timeframes, and sometimes denied modifications without proper review. Borrowers claimed they submitted paperwork multiple times, received conflicting information about what documents were needed, and were denied modifications they should have received under federal guidelines.

The lawsuits centered on the bank's servicing practices — the day-to-day work of collecting payments, handling escrow accounts, and processing modification requests. This is different from the bank's role as a lender. Several of these cases settled, meaning the bank and borrowers reached an agreement without a trial, though the bank did not admit wrongdoing in most settlements.

Key Takeaways

  • Multiple Bank of America loan modification lawsuits settled between 2011 and 2017, with some involving payments to borrowers and others involving loan modifications or account reviews.
  • If you submitted a modification request to Bank of America during the relevant years and were denied or received poor service, you may have been part of a settlement class, but important date to claim have passed for most cases.
  • Determining whether you were affected requires knowing the specific lawsuit and its claim important date, which vary significantly between cases.
  • A lawyer who handles loan modification disputes can review your loan documents and correspondence to tell you whether any remaining claims explore to your situation.

The major Bank of America settlements and what they covered

The largest and most widely known settlement was the 2012 National Mortgage Settlement, in which Bank of America and other major servicers agreed to pay $25 billion across multiple programs. That settlement included direct payments to borrowers who had suffered specific harms, loan modifications for borrowers who met criteria, and account reviews for others. However, that settlement's claim important date have long passed.

Separate class action lawsuits also settled, including cases focused on specific practices like improper fees, document handling, or modification denials. The Kemp v. Bank of America case, for example, involved allegations about how the bank processed modification requests. Each settlement had its own claim period, usually lasting one to three years from the settlement date, and most of those windows have closed.

Some settlements required the bank to review accounts and make corrections automatically, without borrowers filing a claim. If you were in one of those classes, you may have received a letter from the bank or a settlement administrator years ago. Others required you to submit a claim form by a specific important date to receive money or a loan modification.

Whether you can still file a claim

For most Bank of America loan modification settlements, the claim important date has passed. Claim periods typically ended between 2013 and 2018, depending on when the settlement was approved. If you did not submit a claim by the important date, you generally cannot file one now, even if you were part of the class.

The exception is if you were part of a settlement that required automatic relief — meaning the bank was supposed to review your account and make changes without you taking action. In those cases, if you believe the bank did not properly review your account or make the required modification, you may have grounds to contact the settlement administrator or the court overseeing the case. However, these important date are also typically long closed.

To know whether any claim window remains open for your specific situation, you need to identify which lawsuit or settlement applies to your loan. This requires knowing when you submitted your modification request, what the bank told you, and what happened to your loan afterward.

How to learn about you were part of a settlement

Start by searching the Settlement Agreements and Releases database maintained by the Federal Trade Commission, which lists major consumer settlements. You can also search by the case name — for example, "Kemp v. Bank of America" — along with "settlement" to find court documents describing what the case covered and who was included.

If you still have correspondence from Bank of America about a modification request, check the dates and the specific reason for denial. Settlements often covered borrowers who applied during a specific time window or who were denied for particular reasons. Your loan documents and the bank's letters will help you narrow down which case, if any, applies.

You can also contact the settlement administrator directly if you can identify the case. Settlement administrators maintain records of who claimed and who did not, and they can tell you whether your account was part of the class and whether any claim period remains open. The administrator's contact information appears in the settlement agreement itself, which you can find through the court's PACER system (Public Access to Court Electronic Records) if the case was federal.

What a lawyer can do if you believe you were harmed

A lawyer who handles mortgage servicing disputes can review your loan file, your correspondence with Bank of America, and the terms of any settlement to determine whether you were part of a class and whether you missed a important date to claim. They can also assess whether you have any separate claim — for example, if the bank's conduct caused you specific harm that was not covered by a settlement.

If a settlement claim important date has passed, a lawyer can evaluate whether you have grounds to pursue a separate action. This is a high bar: you would need to show that the bank's conduct violated your rights under federal or state law and that you suffered damages as a result. Many loan modification disputes involve complex questions about what the bank was required to do under the loan documents and federal servicing rules.

A lawyer can also help you understand what happened to your loan and whether the bank's handling of your modification request violated the rules that govern mortgage servicers. This is different from determining whether you can recover money — it is about understanding your rights and what options exist.

The difference between loan modification lawsuits and your own claim

A class action lawsuit is a single case representing many borrowers with similar claims. If you were part of the class and the case settled, you received whatever relief the settlement provided — money, a loan modification, or an account review. That settlement is now closed.

Your own claim is separate. If you believe Bank of America violated your rights in handling your loan, you can potentially pursue that claim on your own, either through a lawsuit or through the bank's internal dispute process. However, you must act within the time limit set by law, which varies by state and by the type of claim. For mortgage servicing violations, state laws often set a important date of three to six years from when the harm occurred, but this varies.

The existence of a class action settlement does not prevent you from pursuing your own claim, but it also does not may provide you will win one. You would need to prove the bank's specific conduct harmed you and violated a legal duty.

Red flags when evaluating loan modification claims

Be cautious of any company or lawyer claiming they can reopen a closed settlement or recover money from an old claim important date. Settlement important date are firm, and courts do not extend them except in rare circumstances. If someone tells you they can get you money from a Bank of America settlement years after the important date passed, that is a sign to verify the claim independently.

Also be skeptical of upfront fees. Some companies charge borrowers to review their loan files or to submit claims, even though you can do this yourself or through a lawyer on a contingency basis (meaning they take a percentage of any recovery rather than charging you upfront). If you hire a lawyer, they should explain their fee structure clearly before you sign an agreement.

Finally, do not confuse a loan modification lawsuit with a loan modification program. Bank of America, like other servicers, has ongoing programs to modify loans for borrowers facing hardship. Those are separate from the lawsuits described here and have their own rules and important date. A lawyer can help you understand which applies to your situation.

Frequently Asked Questions

Can I still claim money from the Bank of America National Mortgage Settlement?

No. The National Mortgage Settlement claim period ended in 2016. However, if you were part of the settlement and the bank was supposed to review your account automatically, you may still have grounds to contact the settlement administrator if you believe the review was not done correctly. The administrator can tell you whether your account was reviewed and what the outcome was.

How do I know if I was part of a Bank of America loan modification class action?

Check your loan documents and any letters from Bank of America about a modification request. Note the dates and the reason for any denial. Then search the Federal Trade Commission's settlement database or the court's PACER system using the case name and "settlement" to find the class definition. If your situation matches the class definition and the dates, you were likely part of it.

What if I never received a settlement notice?

Settlement notices were mailed to borrowers' addresses on file with the bank, but some were missed or went to old addresses. Contact the settlement administrator for the specific case to ask whether your account was part of the class and whether you filed a claim. The administrator's contact information is in the settlement agreement, which you can find through the court's website or the FTC database.

Can I sue Bank of America now for what happened to my loan?

You may be able to pursue a separate claim if the bank's conduct violated your rights and you are within the time limit set by your state's law. This is complex and depends on the specific facts of your case, what the bank did, and what state law says about mortgage servicing. A lawyer can review your situation and tell you whether you have a viable claim and how much time you have to pursue it.

What should I do if a company offers to help me recover from an old Bank of America settlement?

Verify the claim independently before paying any fee. Contact the settlement administrator or the court directly to confirm whether a claim period is actually open. If a company is charging you to pursue a claim from a settlement with a closed important date, that is a warning sign. A lawyer working on contingency — taking a percentage of any recovery rather than charging upfront — is a safer arrangement.