House panel votes down bill to protect banks from liability in lender lawsuits

A House committee Friday voted to kill a measure protecting banks from liability in lender lawsuits, one day after several homeowners who’d battled with out-of-state banks over foreclosures testified against it.

The House Business and Labor Committee voted 10-9 to kill Senate Bill 280, which would change the law to say lawsuits alleging contract fraud on loans can be filed only for a violation in writing.

Banks and their lobbyists supported the bill, saying it would fix problems caused by a 2014 Montana Supreme Court decision that said oral discussions between a bank and its customers are admissible in court to prove fraud.

The homeowners acknowledged that their complaints mostly were aimed at big, out-of-state banks that had bought the mortgages from local banks.

Mike Dennison Standard State Bureau

Full Story: http://mtstandard.com/news/local/house-panel-votes-down-bill-to-protect-banks-from-liability/article_8b0ac273-010e-5a12-9d7b-7d0fb43d36ab.html