State sues BOA
(17 December 2010 – USA) The Bank of America has been slammed by a lawsuit, brought by the state of Arizona, claiming the bank defrauded cash-strapped homeowners during the global financial crisis.
The US state’s attorney general, Terry Goddard, said that Arizona launched the legal action after receiving hundreds of complaints and, subsequently, conducted a year-long investigation into the bank’s loan modification and foreclosure practices.
'Bank of America has been the slowest of all the servicers to ramp up loss mitigation efforts in response to the housing crisis,' Mr Goddard said whilst announcing the lawsuit filed in the Maricopa County Superior Court.
'It has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole,' he added.
Specifically Mr Goddard accused the bank of breaching state consumer fraud law as well as a March 2009 agreement made between Arizona and BoA-owned lender, Countrywide.
In the agreement, called a 'consent judgment,' Countrywide agreed to develop and implement a loan modification program for some of its former borrowers in the southwestern US state.
Friday's lawsuit alleges that 'Bank of America has repeatedly violated the judgment's provisions related to loan modifications,' and seeks to order it to pay compensation, fines, lawyers' fees and investigation costs.
'I am filing this lawsuit today because, after years of delay and broken promises, Arizonans should not have to wait any longer to seek redress,' said Goddard.
'Our homeowners and communities need and deserve relief. Bank of America must be held accountable for its deceptive conduct and failed commitments,' he added.
'Bank of America has been the slowest of all the servicers to ramp up loss mitigation efforts in response to the housing crisis,' Mr Goddard said whilst announcing the lawsuit filed in the Maricopa County Superior Court.
'It has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole,' he added.
Specifically Mr Goddard accused the bank of breaching state consumer fraud law as well as a March 2009 agreement made between Arizona and BoA-owned lender, Countrywide.
In the agreement, called a 'consent judgment,' Countrywide agreed to develop and implement a loan modification program for some of its former borrowers in the southwestern US state.
Friday's lawsuit alleges that 'Bank of America has repeatedly violated the judgment's provisions related to loan modifications,' and seeks to order it to pay compensation, fines, lawyers' fees and investigation costs.
'I am filing this lawsuit today because, after years of delay and broken promises, Arizonans should not have to wait any longer to seek redress,' said Goddard.
'Our homeowners and communities need and deserve relief. Bank of America must be held accountable for its deceptive conduct and failed commitments,' he added.
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