Pheonix Business Journal
December 18, 2010
Arizona and Nevada are suing Bank of America Corp., claiming one of the nations largest banks engaged in mortgage fraud.
- A d v e r t i s e m e n t
Attorney General Terry Goddard announced the lawsuit, filed in Maricopa County Superior Court, on Friday. It came after the office said hundreds of complaints have been filed against Bank of America and that the company violated the Arizona Consumer Fraud Act and a consent judgment from March 2009 between the state and Countrywide companies, which Bank of America owns.
“Bank of America has been the slowest of all the servicers to ramp up loss mitigation efforts in response to the housing crisis,” he said. “It has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole.”
The lawsuit follows a year-long investigation of Bank of America into its loan modification and foreclosures. It asks the court to find that the bank violated the consent order and is asking for $25,000 to defendants for each violation of the agreement and $10,000 for each violation of the state’s fraud act.