PHOENIX — Attorneys general in Arizona and Nevada filed civil
lawsuits Friday against Bank of America Corp., alleging that the lender
is misleading and deceiving homeowners who have tried to modify
mortgages in two of the nation's most foreclosure-damaged states.
Bank of America violated Arizona's consumer fraud law by misleading
consumers who tried to reduce their monthly payments to keep their
homes, state Attorney General Terry Goddard said. The bank also violated
the terms of a 2009 consent agreement requiring its Countrywide
mortgage subsidiary to implement a loan modification program, the
Arizona lawsuit alleges.
Hundreds of homeowners kept making their mortgage payments
because Bank of America repeatedly assured them that their loans were
being modified, Goddard said. Instead, many lost their homes anyway.
"Those people could have used that money for something else," Goddard
told The Associated Press. "They were deceived into continuing to make
mortgage payments when they had no hope of saving their homes."
BOB CHRISTIE | 12/17/10 07:17 PM |
PHOENIX — Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation's most foreclosure-damaged states.
Bank of America violated Arizona's consumer fraud law by misleading consumers who tried to reduce their monthly payments to keep their homes, state Attorney General Terry Goddard said. The bank also violated the terms of a 2009 consent agreement requiring its Countrywide mortgage subsidiary to implement a loan modification program, the Arizona lawsuit alleges.
Hundreds of homeowners kept making their mortgage payments because Bank of America repeatedly assured them that their loans were being modified, Goddard said. Instead, many lost their homes anyway.
"Those people could have used that money for something else," Goddard told The Associated Press. "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes."