Arizona and Nevada Sue Bank of America Over Loan Modification and Foreclosure Practices

On December 17, 2010, the Arizona and Nevada attorneys general each filed complaints against Bank of America regarding loan modification and foreclosure practices. In Arizona, the complaint asserts violations of a consent judgment from March 13, 2009 and the Arizona Consumer Fraud Act, alleging that Bank of America has misled Arizona residents about loan modification programs, failed to make timely decisions on modification requests, and proceeded with foreclosures while modification decisions were pending. In Nevada, the complaint similarly asserts that Bank of America engaged in deceptive trading practices with Nevada residents. Consumer complaints prompted the investigation in Nevada, which ultimately resulted in the filing of the complaint. According to the Arizona attorney general, recent reports contend that Nevada and Arizona are first and second in the nation, respectively, with respect to foreclosures. Arizona Press Release. Nevada Press Release.