What the Bank of America loan modification lawsuit covers

Between 2009 and 2015, Bank of America faced multiple lawsuits from homeowners who said the bank mishandled their loan modification requests. The core complaint was that the bank lost documents, failed to respond to applications, or denied modifications without proper review—leaving people in limbo while facing foreclosure. Some borrowers were told their applications were still being reviewed when the bank had already decided to deny them. Others submitted the same documents multiple times because the bank claimed they never arrived.

The lawsuits consolidated into several class actions, with settlements that created funds to compensate affected borrowers. The largest of these settlements required Bank of America to pay hundreds of millions of dollars. If you applied for a loan modification with Bank of America during that window and experienced delays, denials, or lost paperwork, you may have been part of the class—even if you never filed a lawsuit yourself.

Pittsburgh residents who held mortgages with Bank of America and sought modifications during this period are included in the class. You do not need to have lived in Pittsburgh when you applied; what matters is whether Bank of America was your servicer and you requested a modification between 2009 and 2015.

Key Takeaways

  • Bank of America settled multiple loan modification lawsuits for mishandling applications, lost documents, and improper denials between 2009 and 2015.
  • If you requested a loan modification from Bank of America during this period, you were likely included in the class automatically—you did not need to file a claim yourself.
  • Some settlements required the bank to review denied applications again; others paid cash to borrowers who suffered financial harm.
  • Claim important date have passed for most of these settlements, but you can still research whether you received compensation or whether a review was completed on your behalf.
  • Contact Bank of America's loan servicing department or a settlement claims administrator to request records of your modification request and any settlement payment.

How the settlements worked and who received money

The settlements took different forms depending on which lawsuit and which judge oversaw it. Some required Bank of America to review previously denied applications and approve modifications if the borrower met the bank's own criteria. Others created cash funds that paid borrowers a set amount based on how long their process was delayed or how much harm they suffered.

For example, one settlement paid borrowers between $1,500 and $125,000 depending on the severity of the bank's error and the borrower's documented losses. Another required the bank to modify loans for borrowers who had been wrongly denied. A third focused on borrowers who were foreclosed on while their modification was supposedly still under review.

The key difference is that most of these settlements were automatic—you did not have to file a claim to be included. If you were a Bank of America borrower who requested a modification between 2009 and 2015, the settlement administrator identified you from the bank's records and either sent you a check or reviewed your loan without you having to do anything. Some people received payments years after the settlement was approved.

How to learn about you were part of the settlement

Start by contacting Bank of America's loan servicing department directly. Tell them you want to know whether you requested a loan modification between 2009 and 2015 and whether you received any settlement payment related to that request. Ask them to send you written confirmation of your modification request, the date it was submitted, the date it was denied or approved, and any settlement payment made to you.

You can also search the settlement claims administrator's website if you know which lawsuit your case fell under. The largest settlements had dedicated websites where borrowers could enter their loan number and see their status. These sites are no longer active for new claims, but archived versions sometimes remain online, and the administrator's contact information is usually still listed.

If you received a check from Bank of America or a settlement administrator between 2009 and 2020, that was likely your settlement payment. The check stub or letter that came with it should say "loan modification settlement" or reference a specific case name. If you cannot find that paperwork, contact your bank to request copies of deposits made to your account during that period.

What to do if you did not receive a settlement payment

If you believe you should have been included in the settlement but did not receive payment, the first step is to gather your own records. Collect any letters from Bank of America about your modification request, any documents you submitted, and any correspondence about denial or foreclosure. Write down the dates you applied, the dates you received responses, and any names of bank employees you spoke with.

Contact the settlement claims administrator listed in the original settlement agreement. You can find this by searching the case name online or by calling Bank of America and asking which settlement your loan fell under. Explain that you believe you were part of the class but did not receive payment, and provide your loan number and the dates of your modification request.

Be aware that most settlement claim important date have passed—usually between 2 and 5 years after the settlement was approved. If the important date has closed, you may not be able to file a new claim. However, if the settlement included a loan review (rather than just cash payments), you can still request that Bank of America review your denied modification, even after the important date. Some settlements remain open for review requests indefinitely.

The difference between cash settlements and loan review settlements

Some Bank of America settlements paid cash to borrowers who suffered harm. Others required the bank to actually modify loans for people who had been wrongly denied. These are two separate remedies, and you may have been affected by one or both.

If your settlement included a loan review, Bank of America was supposed to look at your denied process again using its current underwriting standards. If you met the criteria, the bank had to modify your loan—meaning your interest rate, term, or monthly payment would change to make it more affordable. This was a real change to your mortgage, not just a payment.

If your settlement included cash, you received a one-time payment to your account or by check. This was meant to compensate you for the bank's error—the time you spent dealing with the problem, the stress of potential foreclosure, or the actual financial losses you suffered (like late fees or credit damage).

Some borrowers received both: a loan modification and a cash payment. Others received only one or the other. Your settlement documents should specify which remedy applied to you.

What happened to borrowers who were foreclosed on during the settlement period

Some Bank of America borrowers lost their homes to foreclosure while their modification process was supposedly still under review. These cases were particularly serious because the bank was processing the modification while simultaneously moving toward eviction.

Certain settlements specifically addressed this group. Borrowers who were foreclosed on while a modification was pending sometimes received larger cash payments or had their loans reinstated (meaning the foreclosure was reversed and the loan was modified instead). A few settlements allowed borrowers to reclaim homes that had already been sold at foreclosure auction, though this was rare and required proving the bank's specific misconduct.

If you lost your home to foreclosure between 2009 and 2015 while your Bank of America modification was in process, research which settlement your case fell under. The remedies for foreclosure cases were often more substantial than for borrowers who kept their homes.

Frequently Asked Questions

Can I still file a claim if the settlement important date has passed?

Most settlement claim important date closed between 2015 and 2020, so you likely cannot file a new claim for cash payment. However, if the settlement included a loan review requirement, you may still be able to request that Bank of America review your denied modification. Contact the bank directly to ask whether review requests are still being accepted for your case.

What if I received a settlement payment but my loan was never modified?

The cash payment and the loan modification were separate remedies. You may have received one without the other. If you received cash but your loan was not modified, check your settlement documents to see whether a modification was supposed to happen. If it was, contact Bank of America to request that they complete the review.

How do I know which Bank of America settlement my case was part of?

Call Bank of America's loan servicing department and provide your loan number and the dates you applied for modification. They can tell you which settlement applied to your account and what remedy you were may have access to to. Ask them to send you written confirmation.

What if I cannot find my original modification process or Bank of America's response?

Request your loan file from Bank of America in writing. Under federal mortgage servicing rules, the bank must provide copies of all documents related to your loan, including modification requests and responses. There is usually a small fee, but you are may have access to to this information regardless of how much time has passed.

Does receiving a settlement payment affect my taxes or credit score?

Settlement payments for loan modification errors are generally not taxable income, but you should consult a tax professional about your specific situation. Settlement payments should not appear on your credit report as income and should not affect your credit score, though any late payments or foreclosure that occurred before the settlement would still be on your record.