BofA lawsuit to stay in state court

AG says switch to federal level would slow its case over bank’s mortgage practices

The Arizona attorney general’s lawsuit against Bank of America over alleged mortgage fraud will remain in state court.

The lender had asked the case, filed in late December, be moved to federal court.

State Attorney General Tom Horne, who inherited the lawsuit from former Attorney General Terry Goddard, said state-court cases often move more quickly then those tried in federal court.

“Homeowners who have suffered from practices that may violate the Arizona Consumer Fraud Act need timely relief,” he said. “And unnecessary delays can be damaging to them.”

The suit alleges BofA deceived borrowers who were trying to obtain loan modifications to keep their homes. The lender is accused of violating the state’s consumer-fraud laws by not responding to many homeowners’ requests for help, rejecting loan-modification applications without supplying sufficient reason and beginning foreclosure proceedings on homeowners at the same time those borrowers were starting loan modifications.

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For the case files and more background see:

LINK – State of Arizona vs. Countrywide, Bank of America, et al – Office of Attorney General Terry Goddard Charges Bank of America with Mortgage Fraud