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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
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