Judge Condemns “Heartless” Bank of America in Foreclosure Case

Mar 31, 2017

A bankruptcy judge issued a $45 million fine and uncommonly harsh language against Bank of America Corp. in a case where a California couple went to court to save their home from foreclosure.

According to a MarketWatch report, Judge Christopher Klein of the U.S. Bankruptcy Court in Sacramento called the bank “brazen” and “heartless” in its problem-laden mortgage modification process involving Erik and Renee Sundquist’s home, which resulted in an erroneous attempt at foreclosure. The judge stated the Sundquists were left in “a state of battle-fatigued demoralization” and blamed the bank for refusing to “kill a goose that keeps laying six percent golden eggs,” a reference to the interest rate that the bank collected from homeowners.

Judge Klein also challenged Bank of America to respect the fine levied against it, stating that should not “be laughed off in the boardroom as petty cash or ‘chump change.’” The judge then questioned whether the company understood what transpired, adding, “It is apparent that the engine of Bank of America’s problem in this case is one of corporate culture…not rogue employees betraying an upstanding employer.”

About the author

Phil Hall

Link copied

Published

Mar 31, 2017

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Oct

Denver, CO

More from

Industry News

Garg Claims Majority In Better Fight, Board Poised To Honor Vote

Founder says he secured more than 51% of voting power to remove five directors, pending confirmation by a third-party inspector

C-Suite Strategies

Oct 01, 2026

Rocket Makes VantageScore Its Default After Testing Finds Borrower Savings

After four months of testing, Rocket will make VantageScore 4.0 its preferred model for eligible retail loans while keeping both scoring options available to brokers

Industry News

Sep 29, 2026

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026