Bank of America’s Supreme Court Win May Boost Lending
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A U.S. Supreme Court ruling this week ensuring banks can pursue home-equity borrowers for payments in bankruptcy may give a boost to lending.
The nation’s highest court handed a victory to Bank of America Corp. by overturning a decision by a federal appeals court that extinguished a home-equity mortgage on an underwater property in Florida. The practice, known as lien stripping, had become common in some states after the Court of Appeals in Atlanta approved it more than two years ago, according to bank lawyers.