Bank of America (NYSE:BAC) Doesn't Get Mortgage Lawsuit Break in Arizona

Arizona's new Republican attorney general won't give Bank of America Corp. (NYSE:BAC) any relief from a mortgage fraud lawsuit filed in the final days of his Democratic predecessor's tenure.

Attorney General Tom Horne told The Associated Press on Monday that he intends to pursue the lawsuit filed Dec. 17, which alleges the lender is misleading and deceiving homeowners who have tried to modify mortgages. The lawsuit accuses the bank of foreclosing on homes after repeatedly assuring owners that their loans were being modified so they would continue to make payments.

Bank of America had criticized former Attorney General Terry Goddard for filing the suit in his last days in office.

Horne said he is willing to settle with the Charlotte, N.C.-based bank under the same terms Goddard proposed but he'll pursue the lawsuit if a settlement is not put in writing.

"There's some basic requirements that Terry had that I don't disagree with," Horne said, including "that the bank assign one person (to each homeowner's case) so you don't have one person egging them on to make payments on the grounds that they'll get a modification, then somebody else comes in and forecloses."




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