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BofA to pay $45M over wrongful foreclosure

Bank of America Corp. will have to pay a $45 million fine for a wrongful foreclosure, The Wall Street Journal reported March 28.

Of the total amount, Judge Christopher Klein awarded plaintiffs Erik and Renee Sundquist almost $1.1 million. The rest will go to law schools and consumer advocacy organizations.

Klein calculates the figure is sufficiently large to not be "laughed off in the boardroom as petty cash." He added that the company's "problem in this case is one of corporate culture ... not rogue employees betraying an upstanding employer."

The Sundquists' owe $584,893.97 on their mortgage. Their original lender had been taken over by BofA, according to the WSJ. The couple filed for bankruptcy in June 2010, but BofA still foreclosed. The sale was eventually reversed.