RENO, Nev. -- Nevada's attorney general wants a federal judge in a big mortgage fraud case to set aside an earlier consent judgment so the state can sue Countrywide Financial Corp. and Bank of America for consumer fraud.
Catherine Cortez Masto filed new papers in U.S. District Court in Reno on Tuesday accusing Countrywide of routinely misrepresenting the nature and terms of mortgages, ensnaring thousands of consumers in loans they did not understand and could not repay.
The complaint says Bank of America has continued to misrepresent the mortgage modification program since it acquired Countrywide in 2008.
Masto says the deceptive practices resulted in an "explosion" of unauthorized and unnecessary foreclosures in the state. She says they have stripped homeowners of their assets, dislocated families and deeply disrupted the entire state's housing market.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
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