Nevada Wallops Bank of America With Sweeping Suit
Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril
by Paul Kiel
ProPublica, Aug. 30, 2011, 5:46 p.m.
Nevada’s attorney general charges that Bank of America and the now-defunct mortgage giant Countrywide acquired by the bank in 2008, deceived borrowers and investors at almost every stage of the process.
This post has been updated to reflect Bank of America’s response.
The state of Nevada dramatically expanded its lawsuit against Bank of America today, turning the narrow case it filed late last year into a broadside that targets virtually all aspects of the bank’s mortgage operations. Bank of America has previously denied wrongdoing.
The sweeping new suit could have repercussions far beyond Nevada’s borders. It further jeopardizes a possible nationwide settlement with the five largest U.S. banks over their foreclosure practices, especially given concerns voiced by other attorneys general, New York’s foremost among them. (You can read the suit here.)