Post Payoff Interest Payments on FHA Insured Loans Class Action

Investigating a class action lawsuit on behalf of homeowners who had an FHA home loan with Wells Fargo, SunTrust, Bank of America and U.S. Bank.  It is alleged that, in certain situations, these lenders have charged one full month of interest on FHA insured loans after the loan was paid in full prior to the last day of that same month.  The situation usually occurred where a homeowner sold or refinanced a house and the closing took place prior to the end of the month.  
 
For example: homeowner pays off the mortgage balance in full on June 5.  Lender charges borrower interest on the full balance of the mortgage though June 30, collecting it at the June 5 closing.
 
The Consumer Financial Protection Bureau has ruled that this FHA policy amounted to a prepayment penalty prohibited by federal law causing the FHA to rescind the policy for new borrowers taking out loans on or after January 21, 2015, but keeping it in place for millions of homeowners who had FHA loans prior to that time. 
 
Please contact us, if you are or were:
 

• A borrower with an FHA insured loan
• between August 2, 1985 and January 20, 2015 that was
• held by one of these lenders at the time the loan was paid off and
• the lender nevertheless collected interest on days after the paid off date

Disclaimer