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B of A hindering foreclosure probe per U.S.

B of A hindering foreclosure probe per U.S.

Phoenix, AZ (BDCi) – A U.S. official for the Housing and Urban Development (HUD) department is claiming that Bank of America is keeping government investigators from getting information regarding controversial foreclosure practices.

Assistant Inspector General of HUD William Nixon’s statement was filed with a court in Arizona by the state’s attorney general Thomas C. Horne who hopes that a judge will permit the government access to current and former Bank of America employees without company attorneys present.

In December 2010, Attorney General Horne filed a lawsuit against Bank of America subsidiary Countrywide Mortgage for violation of consumer protection laws regarding the handling of troubled loans.

With respect to the HUD claim, a Bank of America spokesperson said the company “fully cooperated with the HUD Office of Inspector General’s review of mortgage-servicing practices, and any suggestion otherwise is both inaccurate and inconsistent with how we work with all regulators.”

He added, “We have made, and will continue to make, significant improvements in our loan modification and foreclosure process, nationally and with the states hardest hit by the unprecedented economic downturn, including Arizona.”

Bank of America and other mortgage servicers are under increasing pressure from the Federal Government to be more helpful when it comes to re-working troubled mortgages. Last week, the Obama administration said it would withhold fees from Bank of America because of their poor performance with at-risk mortgages.

State attorneys general and U.S. officials are negotiating with banks on a potential settlement to allegations of “robo-signing”—when employees approve legal documents without proper review—and other questionable foreclosure practices.

By Don Weinstein Source: Wall St Journal

13 June 2011

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