Nevada Attorney General sues Bank of America over foreclosures
Though Congress and state officials are investigating Bank of America foreclosures, Nevada has taken an extra step. The Nevada Attorney General has filed suit against BoA for “deceptive practices.” This lawsuit alleges that the short term loans BoA promised as mortgage modifications simply were not offered.
Nevada loan modifications
The Nevada Attorney General has filed a federal lawsuit against Bank of America. The lawsuit alleges that Bank of America made “false assurances” about the loan modifications they were going to offer. The suit also alleges that short-term loan modification requests were rejected for “inaccurate and deceptive reasons.” In a statement about her lawsuit, Nevada Attorney General Catherine Masto issued a statement that said Bank of America has displayed “callous disregard for providing timely, correct information to people in their time of need.”
The effect of Bank of America on Nevada
Nevada is one of the states that has been hardest hit by the foreclosure crisis. In 2008, Bank of America and Countrywide Financial Corp were ordered by the court to offer good-faith efforts to modify loans. Nevada claims that Bank of America violated that court order by continuing to make a mess of pending foreclosures and modifications in the state. Nevada reports less than 30 percent success with Bank of America Home Affordable Modification Program, while other banks are showing 60 to 89 percent success.
The response of Bank of America
On the same day that Nevada filed suit against Bank of America, Arizona also filed a similar suit. Bank of America has responded to both lawsuits by saying they believe there are “better” ways to address the foreclosure problems. “We share Attorney General Masto’s goal of helping Nevada homeowners. We are disappointed that the suit was filed at this time, however,” Bank of America said. The bank has also said they believe the problems are best addressed in the 50-state negotiations they are currently undertaking. Given the slow response Bank of America has shown in modifying loans or providing short term lending for homeowners in trouble, it is no surprise that Nevada officials have trouble believing them.