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  • NEVADA & ARIZONA AGs Sue Bank of America Dec. 17 2010 FOR LOAN MOD FRAUD

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    Attorney General Catherine Cortez Masto sues Bank of America for alleged deceptive trade practices against Nevada homeowners. In a statement released Friday, Masto says the lawsuit filed in the Eighth Judicial District of the State of Nevada, was triggered by consumer complaints and follows an extensive investigation into B of A's alleged deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices. Click here to find out more! The Complaint alleges that Bank of America is: 1) Misleading consumers by promising to act upon requests for mortgage modifications within a specific period of time; 2) Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions; 3) Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance; 4) Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications; 5) Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications; 6) Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not; 7) Misleading consumers with offers of modifications on one set of terms, but then providing them with agreements on different sets of terms, or misrepresenting that consumers have been approved for modifications. "We are holding Bank of America accountable for misleading and deceiving consumers,” said Attorney General Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.” Nevada homeowners who are in or are facing foreclosure are advised to seek assistance as soon as possible. Homeowners can find information concerning a HUD-approved counseling agency by calling HUD’s interactive voice system at 800.569.4287 Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation's most foreclosure-damaged states. 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. "Those people could have used that money for something else," Goddard told The Associated Press. "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes." Nevada Attorney General Catherine Cortez Masto told the AP that the Silver State's lawsuit was a last resort to try to get the bank to change its ways. It was filed after several discussions with bank managers led to assurances but little more.

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    Attorney General Catherine Cortez Masto sues Bank of America for alleged deceptive trade practices against Nevada homeowners. In a statement released Friday, Masto says the lawsuit filed in the Eighth Judicial District of the State of Nevada, was triggered by consumer complaints and follows an extensive investigation into B of A's alleged deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices. Click here to find out more! The Complaint alleges that Bank of America is: 1) Misleading consumers by promising to act upon requests for mortgage modifications within a specific period of time; 2) Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions; 3) Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance; 4) Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications; 5) Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications; 6) Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not; 7) Misleading consumers with offers of modifications on one set of terms, but then providing them with agreements on different sets of terms, or misrepresenting that consumers have been approved for modifications. "We are holding Bank of America accountable for misleading and deceiving consumers,” said Attorney General Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.” Nevada homeowners who are in or are facing foreclosure are advised to seek assistance as soon as possible. Homeowners can find information concerning a HUD-approved counseling agency by calling HUD’s interactive voice system at 800.569.4287 Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation's most foreclosure-damaged states. 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. "Those people could have used that money for something else," Goddard told The Associated Press. "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes." Nevada Attorney General Catherine Cortez Masto told the AP that the Silver State's lawsuit was a last resort to try to get the bank to change its ways. It was filed after several discussions with bank managers led to assurances but little more.

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    NEVADA & ARIZONA AGs Sue Bank of America Dec. 17 2010 FOR LOAN MOD FRAUD

    Uploaded by

    83jjmack
    Attorney General Catherine Cortez Masto sues Bank of America for alleged deceptive trade practices against Nevada homeowners. In a statement released Friday, Masto says the lawsuit filed in the Eighth Judicial District of the State of Nevada, was triggered by consumer complaints and follows an extensive investigation into B of A's alleged deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices. Click here to find out more! The Complaint alleges that Bank of America is: 1) Misleading consumers by promising to act upon requests for mortgage modifications within a specific period of time; 2) Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions; 3) Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance; 4) Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications; 5) Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications; 6) Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not; 7) Misleading consumers with offers of modifications on one set of terms, but then providing them with agreements on different sets of terms, or misrepresenting that consumers have been approved for modifications. "We are holding Bank of America accountable for misleading and deceiving consumers,” said Attorney General Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.” Nevada homeowners who are in or are facing foreclosure are advised to seek assistance as soon as possible. Homeowners can find information concerning a HUD-approved counseling agency by calling HUD’s interactive voice system at 800.569.4287 Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation's most foreclosure-damaged states. 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. "Those people could have used that money for something else," Goddard told The Associated Press. "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes." Nevada Attorney General Catherine Cortez Masto told the AP that the Silver State's lawsuit was a last resort to try to get the bank to change its ways. It was filed after several discussions with bank managers led to assurances but little more.

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    Arizona Sues Bank Of America, Alleges Loan

    Modification Fraud
    BOB CHRISTIE | 12/17/10 05:39 PM |

    Arizona Sues Bank Of America, Bank Of America Mortgages, Bofa, BofA Loan Modification, Consumer
    Fraud, Countrywide Lawsuits, Loan Modification, Mortgage Modification, Terry Goddard, Business News

    PHOENIX — Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America
    Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify
    mortgages in two of the nation's most foreclosure-damaged states.

    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.

    "Those people could have used that money for something else," Goddard told The Associated Press.
    "They were deceived into continuing to make mortgage payments when they had no hope of saving
    their homes."

    Nevada Attorney General Catherine Cortez Masto told the AP that the Silver State's lawsuit was a last
    resort to try to get the bank to change its ways. It was filed after several discussions with bank managers
    led to assurances but little more.

    "Clearly there is a disconnect between what Bank of America tells me at the management level and
    what's happening on the front line," Masto said.
    Masto said separate lawsuits show the bank's problems with consumers are widespread.

    "The only thing that I'm asking is that (Bank of America) give them a reasonable response in a timely
    manner," she said. "It is, in my perspective, a callous disregard for what we are telling them."

    Nevada and Arizona are among the states hardest hit by homeowners who have defaulted on mortgages
    in the last few years as adjustable payments soared, people lost their jobs, and home values collapsed.
    One out of every 99 households received a foreclosure notice last month, according to RealtyTrac Inc.,
    and Arizona's rate wasn't far behind.

    Advertisement

    The Arizona attorney general's office was deluged with consumer complaints and launched an
    investigation more than a year ago, Goddard said. Settlement talks with Bank of America began in April
    but ultimately collapsed Thursday.

    Goddard, a Democrat, is leaving office in January after an unsuccessful run for governor and will be
    replaced by Republican Tom Horne. A Bank of America spokesman criticized Goddard for filing the
    lawsuit in his last days in office while multistate negotiations on foreclosures were under way.

    Dan Frahm, a senior vice president for the Charlotte, N.C.-based bank, said it shares the attorneys
    general's goal of helping homeowners. "We are disappointed that the suits were filed at this time,
    however, because we and other major servicers are currently engaged in multistate discussions led by
    Attorney General (Tom) Miller in Iowa to try to address foreclosure related issues more
    comprehensively," Frahm said in an e-mailed statement.

    "Bank of America has been a cooperative partner with the attorneys general, has worked with state
    leaders to evolve programs and resources to broaden assistance to distressed customers, and we are
    already under way with further improvements to our processes and programs for Bank of America
    customers," Frahm said.

    Bank of America has completed nearly 750,000 loan modifications and has foreclosed on fewer than half
    that many, Frahm said. Many of the foreclosures did not qualify for loan modifications.

    The Arizona lawsuit, filed in Maricopa County Superior Court, alleges that the bank has repeatedly
    violated the consent agreement that was expected to lead to loan modifications for thousands of
    Countrywide customers in Arizona. But Bank of America, which had acquired Countrywide in July 2008,
    failed to make timely decisions on modification requests and went ahead with foreclosures, Goddard
    said.

    "The quick summary is they violated our court-imposed agreement as to Countrywide borrowers, and
    then as to many of Bank of America's borrowers, they committed fraud," Goddard said. "They told them
    things that they did not do."
    The lawsuit asks for contempt citations against the bank for violating the consent agreement. It also
    seeks restitution for consumers, civil penalties, legal fees, plus $25,000 for each consent agreement
    violation and up to $10,000 for each violation of the Arizona Consumer Fraud Act.

    Nevada's complaint accuses the bank of operating its loan modification program in violation of the
    Nevada Deceptive Trade Practices Act. It seeks civil penalties and restitution along with other fees.

    Bank of America shares rose 5 cents to $12.57 Friday.

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