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Arizona, Nevada sue Bank of America

Associated Press / December 18, 2010

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PHOENIX — Attorneys general in Arizona and Nevada filed civil lawsuits yesterday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages.

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.

Nevada Attorney General Catherine Cortez Masto said the suit was a last resort to try to get the bank to change its ways.