Arizona sues Bank of America on mortgage servicing

[IScreamSundays]

Source: Reuters

* BofA misled customers over loan mods-Arizona lawsuit

* Says BofA violated 2009 consent judgment

* Seeks monetary penalties and restitution (Adds BofA comment, byline)

By Dan Levine

SAN FRANCISCO, Dec 17 (Reuters) - The state of Arizona has sued Bank of America Corp, alleging the lender consistently misled consumers about its home loan modification process, a source familiar with the situation said.

The lawsuit, filed by Arizona Attorney General Terry Goddard's office on Friday in state court, accuses Bank of America (BAC.N) of violating a 2009 consent judgment in which it committed to widespread loan modifications, according to a draft copy of the complaint obtained by Reuters.

In it, Goddard's office also accuses the bank of violating the state's consumer fraud act.

Goddard is on the executive committee of a separate 50-state probe into mortgage servicing practices. He recently lost a run for governor in Arizona.

Read more: http://www.reuters.com/article/idUSN1711272720101217

[JonLP24]

1. Goddard!

So disappointed he lost.

[chill_wind]

2. K & R. n/t

[sarcasmo]

3. Kick, good for Goddard.