Husband had loan insured, but bank never told his widow [View all]

[Omaha Steve]

Bank of America and two other companies now face a federal lawsuit alleging negligence and fraud

http://www.omaha.com/money/husband-had-loan-insured-but-bank-never-told-his-widow/article_3526d410-8d04-5dc9-85ef-775b53ff828a.html

POSTED: SUNDAY, APRIL 26, 2015 1:00 AM
McClatchy Washington Bureau

WASHINGTON — For more than a decade after her husband died, Laura Coleman Biggs paid her mortgage to a Bank of America subsidiary. She was never told, even as she was weeks from losing her home, that her husband had actually protected her against foreclosure.

George “Kenny” Mitchell had taken out a special lender-pushed insurance policy to pay off most of his loan if he died.

But when he died on April 26, 2003, the subsidiary of Bank of America did not arrange a payoff of the $100,000 policy and continued to charge his widow an insurance premium every month along with her mortgage payment.

Now Bank of America, Select Portfolio Servicing — a company that collects mortgage payments — and a Florida insurer all face a federal lawsuit in California seeking compensatory and punitive damages, alleging negligence and fraud for their treatment of Biggs.

FULL story at link.