The Real Deal Miami

Class action suit alleges ARM misfired

June 03, 2008 10:44AM

An adjustable-rate mortgage holder initiated a class action lawsuit against Bank of America, claiming it increased his house payment inaccurately; he suspects the same happened to other borrowers. The plaintiff is the mayor of Lauderhill, Richard J. Kaplan, who said the bank used the wrong date, perhaps intentionally, to identify the value of an index used to set the new monthly payment on his home loan. The alleged mistake bumped his mortgage interest up about $300 a year, and his effort to correct the error has come to no avail.