WILMINGTON, Del. - Bank of America Corp.'s Countrywide unit must
face a lawsuit alleging it orchestrated a kickback scheme for
private mortgage-insurance premiums, an appeals court ruled,
reversing a lower court's decision to dismiss the case.
Three Pennsylvania homeowners who obtained mortgages from
Countrywide Home Loans in 2005 and 2006 sued, claiming the company
overcharged for private mortgage insurance and violated real estate
laws by interfering with the settlement process. A district court
judge erred in dismissing the case, the US Court of Appeals in
Philadelphia ruled Wednesday.
"Congress bestowed upon the consumer the right to a real estate
settlement free from unlawful kickbacks and unearned fees,'' the
appeals court said.
"We're evaluating the ruling and will respond to the court at
the appropriate time,'' a spokeswoman for Bank of America said.
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