Industry NewsMortgage

Arizona, Nevada sue BofA over loan mods

Lender says talks with state attorneys general are better approach

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Arizona and Nevada are suing Bank of America over its loan modification and foreclosure practices, claiming the lender was slow to ramp up loss mitigation efforts and then misled consumers with false assurances that they wouldn't be foreclosed on while requests for loan modifications were pending. Bank of America "has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole," Arizona Attorney General Terry Goddard said in announcing a lawsuit alleging violations of the Arizona Consumer Fraud Act. Arizona's suit also claims Bank of America has violated the terms of a multibillion-dollar 2008 consent order, in which the lender settled claims by a number of state attorneys general alleging unfair and deceptive lending practices by Countrywide Financial Corp., which Bank of America acquired that year. Nevada Attorney General Catherine Cortez Masto said her office has filed suit against Bank of Ameri...