Arizona Sues Bank Of America Over Home Loan Modifications

The attorney general for Arizona is none too pleased with Bank of America. Earlier today, he filed a lawsuit against BofA, alleging the bank misled customers about its home loan modifications.

Arizona AG Terry Goddard charges that Bank of America violated a 2009 consent judgment in which the company agreed to implement a loan modification program for its Countrywide mortgage subsidiary. He claims that Arizona homeowners with BofA mortgages were duped into continuing to pay their mortgages because they were told by the bank that loan modifications were forthcoming.

According to Reuters, Arizona is seeking $25,000 per violation of the consent decree, and up to $10,000 for consumer fraud breaches. It also asks that Bank of America pay restitution to customers.

Bank of America is also being investigated by a joint 50-state committee (oh which Goddard is a part) on its mortgage servicing practices.

A rep for the bank tells Reuters:

Bank of America will continue to work towards fair and equitable foreclosure related practices through the multi-state attorneys general process with the goal of getting Arizonans assistance without the cost, delay and uncertainty of this litigation.

Arizona sues Bank of America on mortgage servicing [Reuters]
Arizona sues BofA for alleged mortgage fraud [AP]