Bank of America (NYSE:BAC) on Wednesday denied allegations by Nevada's attorney general that it's been harming homeowners by leading them to believe they can modify their mortgages -- and then foreclosing on them.
Attorneys for the bank filed their first legal response to a Dec. 17 lawsuit filed by Attorney General Catherine Cortez Masto, who charged Bank of America had misled and deceived consumers about mortgage modifications and short sales and that some Nevada consumers had depleted their savings by making mortgage payments based on the false hope they'd be keeping their homes
Another development Wednesday, however, may lead to resolution of this and similar lawsuits filed around the country.
The Wall Street Journal, citing unidentified sources, reported the Obama administration is advocating a settlement over mortgage-servicing problems nationwide involving Bank of America and other large servicers such as Wells Fargo and J.P. Morgan Chase.
The administration wants a commitment from mortgage servicers to reduce the loan balances of troubled borrowers who owe more than their homes are worth, the newspaper reported.
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