OLYMPIA -- Washington state is suing a subsidiary of Bank of America Corp., arguing that the company has improperly handled thousands of foreclosures in the state.
Attorney General Rob McKenna said Friday that ReconTrust Company has repeatedly broken the law by failing to act as a neutral third party on behalf of the lender and the borrower. McKenna said the company's practices make it difficult for borrowers to halt foreclosures while working to save their homes.
McKenna said the company also violated state law by failing to maintain an office in the state where borrowers can go to make last-minute payments or discuss the process.
The lawsuit seeks civil penalties of up to $2,000 per violation as well as restitution for consumers.