RESPA Class Action Filed Against Bank of America, Carrington

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Bank of America, N.A. and Carrington Mortgage Services, LLC are facing a Virginia consumer’s proposed class action claiming the companies broke the law by wrongfully foreclosing on his home without satisfying certain conditions precedent to foreclosure in the man’s deed of trust. According to the lawsuit, the plaintiff’s deed of trust, which was insured by the Federal Housing Administration (FHA), mandated a face-to-face meeting between the man and the defendants before foreclosure could take place on his home.

Further, the lawsuit claims Carrington Mortgage violated the Real Estate and Settlement Procedure Act (RESPA) with its alleged failure to follow certain mandatory steps after receiving the plaintiff’s complete mortgage assistance application at least 37 days before the foreclosure sale.

“As a matter of policy and common practice, [the defendants] made absolutely no effort to arrange a face-to-face meeting with [the plaintiff] or the putative class before three full monthly installments due on the mortgage are unpaid,” the case claims. “Moreover, consistent with its policy not to conduct face-to-face interviews, [the defendants] never made a trip to [the plaintiff’s] home where its intent was to provide loss mitigation services within this timeframe.”