Nevada Sues to Set Aside Settlement Bank of America Allegedly Dishonored.

   In a Complaint reportedly filed by the Attorney General of Nevada on August 30, 2011, Nevada has filed suit to set aside a Mortgage Foreclosure Fraud Settlement allegedly dishonored by Bank of America.  I have searched PACER.  Nevada's Complaint, filed in the United States District Court for the District of Nevada, is not available Online as yet.  I will keep searching every so often.  When I find the Complaint, I intend to post it here.  In the meantime, Ms. Gretchen Morgenson has reported on it and her reporting is reliable.  See Gretchen Morgenson, "Nevada Sees Violations of Mortgage Agreement" p. B1, col. 6 (New York Times Nat'l ed., "Business Day" Section, Wed., August 31, 2011).

   Ms. Morgenson reports eight (8) ways in which BOA allegedly dishonored its Settlement Agreement with the State of Nevada, among other parties, and why Nevada wants out of that agreement:

1. BOA told Credit Reporting Agencies that people had defaulted on their Mortgage payments, when they had not defaulted;
2. BOA employees allegedly misrepresented to Borrowers the reasons why Borrowers' Mortgages were not modified despite the Borrowers' requests;
3. BOA told the Borrowers that "the actual owners of the loans had refused to allow changes" to the Mortgages when that was not true;
4. BOA claimed that Borrowers had not made payments on "trial loan modifications," although they had made payments;
5. BOA offered loan modifications, at first with one package of provisions "only to come back with a substantially different deal";
6. "Several" of BOA's employees claimed that BOA set a maximum time limit of 7 to 10 minutes to spend with each Borrower, otherwise the employees would be reprimanded if they took a longer time to discuss a Borrower's status or capacities or wishes;
7. BOA (in its prior incarnation as Countrywide before it acquired Countrywide and  Countrywide's Mortgage Foreclosure liabilities) sold "mortgage securities" to Investors without delivering "necessary loan documentation," i.e., it failed to "endorse the mortgage note and deliver it to the trustee overseeing the pool"; and
8. "These paperwork failures should have barred the bank from foreclosing on borrowers, the Nevada complaint says, but it went ahead nonetheless."

Id.

   Whew.  So do you think, based on these allegations, that this Bank can be trusted in future Settlement Agreements it makes concerning the Mortgage Foreclosure Fraud debacle?  Many of these allegations concern conduct allegedly indulged in by Bank of America after it entered into the Court-approved Settlement Agreement with the State of Nevada, among other parties.

   Apparently the remaining Attorneys General of the 50 States, all of whom are currently negotiating yet another "Settlement Agreement" with Banks and other participants in the Mortgage Foreclosure Fraud model, are paying attention to this development.  See id.  Watch for the Administration and several of the State Attorneys General to try to put pressure on the Nevada Attorney General to dismiss the lawsuit and accept yet another "Settlement Agreement". 

   Asking the Federal Court to set aside the previous so-called "Settlement Agreement" is not the only relief requested in Nevada's Complaint this week.  "Ms. Masto's [the Nevada Attorney General's]  complaint asks that the court impose civil penalties on Bank of America and order it to cover the costs of caring for foreclosed properties borne by municipalities."  Id.

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