BREAKING: Bank of America BROKE Deal, Nevada Suing UPDATED

TUE AUG 30, 2011 AT 03:43 PM PDT

BREAKING: Bank of America BROKE Deal, Nevada Suing UPDATED

byTasini

“This is just up, from the New York Times’ Gretchen Morgenson. Not surprisingly, Bank of America–one of the truly despicable actors in the mortgage scandal–has violated a deal it struck with the state of Nevada. And Nevada wants to sue.

[…]

In her filing, Ms. Masto contends that Bank of America raised interest rates on troubled borrowers when modifying their loans even though the bank had promised in the settlement to lower them. The bank also failed to provide loan modifications to qualified homeowners as required under the deal, improperly proceeded with foreclosures even as borrowers’ modification requests were pending and failed to meet the settlement’s 60-day requirement on granting new loan terms, instead allowing months and in some cases more than a year to go by with no resolution, the filing says.

[…]

The depth of the breach is breathtaking:

For example, the complaint says the bank advised credit reporting agencies that consumers were in default on their mortgages when they were not, and contends that Bank of America employees deceived borrowers about why their requests to modify loans were denied. In addition, it says, the bank falsely claimed that the actual owners of loans had refused to allow changes to their mortgages, and it incorrectly claimed that borrowers had failed to make payments on trial loan modifications when in fact they had. Bank of America also misled borrowers, the Nevada attorney general’s filing noted, by offering loan modifications with one set of terms only to come back with a substantially different deal.

Among the more troubling findings in the Nevada complaint is the contention by several Bank of America employees that the company imposed strict limits on the amount of time they could spend on the phone assisting troubled borrowers seeking help with their loans.”

via Daily Kos: BREAKING: Bank of America BROKE Deal, Nevada Suing UPDATED.

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