Arizona Attorney General Terry Goddard discusses the unfair and fraudulent loan practices Bank of America has engaged in that had the state and the state of Nevada sue the bank.
AP) Bank of America Corp. violated Arizona’s consumer fraud law by misleading consumers who tried to reduce their mortgage payments so they could keep their homes, state Attorney General Terry Goddard said Friday as he filed a civil lawsuit against the bank.
The bank also violated the terms of a 2009 consent agreement requiring the bank’s Countrywide mortgage subsidiary to implement a loan modification program, the lawsuit alleges.
Hundreds of homeowners kept making their mortgage payments because Bank of America repeatedly assured them their loan was being modified, he said. Instead, many lost their homes anyway.
“Those people could have used that money for something else,” Goddard said. “They were deceived into continuing to make mortgage payments when they had no hope of saving their homes.”
