Arizona is filing a civil lawsuit against Bank of America Corp. alleging the company violated the state's consumer fraud law by misleading consumers trying to get loan modifications.
Arizona Attorney General Terry Goddard said Friday that the bank also violated the terms of a 2009 consent agreement it signed requiring the bank's Countrywide mortgage subsidiary to implement a loan modification program.
Goddard says hundreds of homeowners kept making their mortgage payments because Charlotte, N.C.-based Bank of America repeatedly assured them their loan was being modified. Instead, many lost their homes anyway.
Goddard says Nevada is expected to file a similar suit later Friday.
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