Business News • MarketWire • Bank of America Defrauded Homeowners About Tax Benefits of Mortgages, Says Lawsuit Filed by MIFSP |
Bank of America Defrauded Homeowners About Tax Benefits of Mortgages, Says Lawsuit Filed by MIFSP |
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Bank of America Defrauded Homeowners About Tax Benefits of Mortgages, Says Lawsuit Filed by MIFSP
ATLANTA, GA--(Marketwire - Jul 19, 2011) - On July 15, 2011, the Mortgage Institute For Financial Services Professionals (MIFSP) filed suit in U.S. Federal District Court alleging unfair and deceptive business practices against Bank of America (BOA). The lawsuit claims that in promoting mortgages, BOA defrauded consumers about the tax benefits of having a mortgage as documented in "The Red Report, When Banks Don't Compete", a study testing mortgage calculators made available to consumers on and through websites of hundreds of banks. "The faulty calculator on Bank of America's website that consumers used to determine mortgage related tax savings, such as in comparing the rent versus buy option, significantly overstated and grossly misrepresented tax savings from the mortgage interest deduction, thus luring consumers into applying for and obtaining mortgages that may not have been in their financial best interest. Someone making a home mortgage decision using these calculators, and counting on that calculated tax benefit to make homeownership affordable, was misled from the outset," say Leon Morris, Executive Director of MIFSP.
View More : http://www.marketwire.com/mw/release.do?id=1539462&sourceType=3
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