IMPORTANT UPDATE: A Notice was sent on February 20, 2014, regarding Amended Form(s) 1098 for all years in which you repaid interest that you had previously deferred under your Option ARM loan with Bank of America. You may view the Notice by clicking here.

Introduction To The Case

For information concerning the subject matter of this lawsuit, please review the complaint.

Overview Of The Proposed Settlement

If you had an option adjustable rate mortgage ("Option ARM") with Bank of America, N.A. ("BANA") in 2009, 2010, 2011, 2012, or 2013, you may be affected by a proposed class action settlement. You may want to inform your tax professional since it may affect your Tax Returns for prior years. If you do not use a tax professional, you can still participate in this Settlement and recover the money that will be paid under the Settlement if you are eligible. You can participate in the Settlement even if you no longer own the property that had the mortgage.

The proposed Settlement resolves a class-action lawsuit alleging that BANA under-reported to the IRS on Form 1098 (Mortgage Interest Statement) the amount of mortgage interest paid to BANA during Tax Years 2009, 2010, 2011, or 2012.

Form 1098 is an Internal Revenue Service form that lenders must file with the IRS and provide to borrowers each year. On Form 1098, lenders are generally required to report, among other things, the mortgage interest payments they receive from borrowers in a given year. The IRS uses the form to check the accuracy of the mortgage interest deduction you claim on your income Tax Return.

An Option ARM allows a monthly "minimum payment" that is often less than the interest that was actually owed in a particular month. The portion of the interest that is not paid in those months is called "deferred interest." If, according to BANA's records, you eventually paid all or a portion of that "deferred interest" in 2009, 2010, 2011, 2012, or 2013, you are a member of the Settlement Class. You may have done so, for example, when you sold or refinanced your house, or when you made a payment in a given month on your Option ARM that was in excess of the interest owed for that month.

For Tax Years 2009 through 2012, BANA did not report Payments of "Deferred Interest" on Form 1098-which BANA files with the IRS and sends to you each year reporting the amount of your mortgage interest payments for the year. Accordingly, if you relied on your Form 1098 to determine the amount of mortgage interest to claim as a deduction on your income Tax Returns, you may have overpaid your taxes.

What Are the Benefits of this Settlement?

The Settlement is structured based on Tax Years:

Fairness Hearing

The Court overseeing this case still has to decide whether to approve the Settlement and will make that determination after a "Fairness Hearing." Payments will only be made if the Court approves the Settlement and after appeals, if any, are resolved.

Your legal rights will be affected by this Action and this Settlement whether you act or do not act. Your legal rights and options-and the deadlines to exercise them-are explained in the Notice and on this Website. Please read the Notice and review this Website carefully.





Important Dates
DateDeadline
July 13, 2014 Claim Form Deadline
(postmarked)
February 28, 2014 Exclusion Deadline
(postmarked)
February 28, 2014 Objection Deadline
(filed and received)
April 11, 2014
at 1:30 p.m.
Fairness Hearing

Your Options

  • To participate in the Settlement, submit a Claim Form
  • To find out details regarding how to exclude yourself from or object to the Settlement, please consult the Notice