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Arizona Sues Bank Of America

The state of Arizona filed a lawsuit against Bank of America today that accuses it of violating terms of a 2009 consent agreement regarding loan modifications. The original complaint concerns former customers of its Countrywide home mortgage subsidiary, which Bank of America acquired in the summer of 2008. Arizona Attorney General Terry Goddard accused Countrywide of fraud in originating and marketing loans. Now, Goddard says BofA has failed to live up to a consent agreement signed in March of 2009. According to the agreement, Goddard says BofA is supposed to implement a loan modification program. Instead, he says the bank has been slow in responding to modification requests and proceeded with foreclosures while requests were pending. "It has shown callous disregard for the devastating effects that its servicing policies and its many errors in dealing with consumers have had on individual homeowners and on the economy as a whole," Goddard said. The lawsuit also accuses Bank of America of violating Arizona's fraud statute by misleading consumers about the modification process. Goddard says Nevada plans a similar lawsuit. Both Nevada and Arizona have among the nation's highest foreclosure rates. Bank of America has not responded to a request for comment. Related Links: State of Arizona's complaint against BofA Press Release from the Office of Attorney General Terry Goddard