The year 2008 was a very consequential year. Not only did we elect a new president, but we also entered one of the worst economic recessions in American history. As we climbed out of the financial hole, we slowly realized that banks victimizing borrowers had caused a major part of the collapse, and that’s when the court system went to work.
How Was Bank Of America Held Responsible For The Great Recession?
When it was discovered that Bank of America had neglected to properly evaluate mortgage applications, had changed contracts without notifying investors, and had intentionally accepted borrowers that could not afford a mortgage, the government took the bank to court. After years of legal fighting, Bank of America finally ended the lawsuit with a record breaking $16.65 billion settlement in August of 2014, but it would still take years for people to receive compensation for their losses.
Why Did Bank of America Pay The Florida Bar $23 Million?
The Florida Bar Foundation has just received a check for $23 million from the monitor in charge of the Bank of America lawsuit. The money is meant to provide legal aid for people struggling with their mortgage, and though it won’t help people right on the edge of losing their homes, it will help many avoid the foreclosure process. However, this legal aid will do little to help the people who suffered because of Bank of America’s allegedly predatory mortgages and bad loan modification practices.
The Bank of America settlement did not release the financial firm from its liability. That means that victims of Bank of America’s potentially predatory lending can still pursue justice through a civil lawsuit—and many are doing just that—but these banks are coming up with clever countermeasures to keep these people from getting justice. To find out more about what these banks are doing, and how we can stop it, keep following our blog, Facebook, and Twitter.