PHOENIX (CN) - Bank of America violated a consent judgment it signed almost 2 years ago to provide loan modifications and help relocate borrowers, the Arizona attorney general claims in Superior Court. Attorney General Terry Goddard says BofA "has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole," and continued to make misrepresentations and foreclose on homes despite the terms of the settlement.
The consent decree, signed March 13, 2009, "resolved allegations that Countrywide [Financial Corp.] engaged in consumer fraud in its mortgage lending practices," Goddard says in his complaint in Maricopa County Court. Bank of America acquired Countrywide on July 1, 2008.
Goddard claims Bank of America has continued to misrepresent "to Arizona consumers whether they were eligible for modifications of their mortgage loans, when Bank of America would make a decision on their modification requests, whether Bank of America had approved their modification requests, why Bank of America declined their modification requests, and whether and when Bank of America would foreclose upon their homes."
Since the consent judgment was filed, the bank has "initiated foreclosure proceedings or moved eligible borrowers toward foreclosure while their requests for loan modifications are pending, despite the bank's commitment to halt foreclosures during that time," the state claims.
http://www.courthousenews.com/2010/12/21/32769.htm
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