Here is information from the Nevada Attorney General regarding the filing against Bank of America.
The Complaint alleges that Bank of America is:
1)Misleading consumers by promising to act upon requests for mortgage modifications within a specific period of time;
2)Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions;
3)Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance;
4)Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications;
5)Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications;
6)Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not;
7)Misleading consumers with offers of modifications on one set of terms, but then providing them with agreements on different sets of terms, or misrepresenting that consumers have been approved for modifications.
Because of Bank of America’s false promises, many Nevada consumers continued to make mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds. Additionally, due to Bank of America’s misleading assurances, consumers deferred short-sales and passed on other attempts to mitigate their losses. And they waited anxiously, month after month, calling Bank of America and submitting their paperwork again and again, not knowing whether or when they would lose their homes. Whatever the consumers’ particular circumstances, they all suffered the stress and frustration of being misled by Bank of America while trying to take responsible action to modify their mortgages so they could continue to make their payments and remain in their homes.
“We are holding Bank of America accountable for misleading and deceiving consumers,” said Attorney General Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions."
Bank of America’s misconduct in misrepresenting its mortgage modification program was confirmed in interviews with consumers, former employees and other third parties and through review of relevant documents. Former employees describe an environment in which Bank of America failed to staff its modification functions with employees who had the necessary training, skills and experience. According to employees, the modification process was chaotic, understaffed and not oriented to customers. Employees were even reprimanded for spending too much time with individual consumers.
“Consumers turn to their banking or lending institutions for answers when faced with a life changing decision such as saving their home,” said Attorney General Masto. “Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious."
Sounds like the Nevada AG is listening to complaints from citizens. I am sure there have been thousands or they would not be taken B of A to court. The results of this case may have an impact on the housing crisis across the country. If the bank is held accountable for their actions real change may come about in the mortgage and banking industry.
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