Arizona Sues Bank of America Over Mortgage Servicing: Report

Reuters

The state of Arizona has sued Bank of America Corp (NYSE:BAC), alleging that the bank has consistently misled consumers about its home loan modification process, a source familiar with the situation said.

The lawsuit, filed on Friday by Arizona Attorney General Terry Goddard, accuses Bank of America of violating the state's consumer fraud act, according to a draft copy of the lawsuit obtained by Reuters.

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The state also says Bank of America violated a consent judgment over its loan servicing, and is seeking a $25,000 penalty per violation, according to the lawsuit.

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