Thursday, September 1, 2011

Nevada Attorney General Joins Schneiderman in Fighting Bank of America's Foreclosure Fraud

It's a daily saga by now: the updates on whether or not Bank of America (and the rest of the banking industry that continues to profit off shady mortgage practices) will face any penalties for helping create the financial crisis.

We've followed Eric Schneiderman, New York's attorney general, in his fight against settlements that would give B of A and other banks a sweetheart deal--and close the door on future charges.

Now Nevada's attorney general, Catherine Cortez Masto, has entered the fray in a big way. She's filed a lawsuit against B of A, accusing them of breaching a 2008 settlement in which they promised to modify up to 400,000 mortgages (that they now owned as a result of purchasing toxic lender Countrywide) at a cost of up to $8.4 billion. They were supposed to stop foreclosing, refinance and reduce principal. Read more

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