Bank of America Corp. asked a federal judge to reject a homeowners’ effort to sue the bank over its failure to modify mortgage loans as a class-action case, Bloomberg News reported yesterday. The second-biggest U.S. lender by assets today urged U.S. District Judge Rya Zobel to deny the borrowers’ request to pursue the case as a group, which would give them greater leverage in the litigation. Bank of America is being sued by homeowners who claim that the company didn’t comply with a government program aimed at modifying mortgage loans called the Home Affordable Modification Program. The borrowers claim the bank first granted temporary modifications, then ordered employees to stall, lie to customers and falsify documents. They cite statements in court documents by former Bank of America employees who said they were rewarded with cash bonuses and gift cards for sending applicants into foreclosure.
