Banking Law

BofA Borrowers Sign Confidentiality Pacts Before Getting Loan Modifications, Ariz. AG Says

The Arizona Attorney General’s office is asking a judge to block confidentiality agreements signed by borrowers who get mortgage modifications from Bank of America.

Arizona Attorney General Tom Horne says the agreements are impeding his office’s investigation of the bank’s Countrywide Financial unit, according to the Phoenix Business Journal and Bloomberg News.

One agreement is cited in court documents in Phoenix state court. It provides that the borrower “will remove and delete any online statements regarding this dispute, including, without limitation, postings on Facebook, Twitter and similar websites.” The settlements bar borrowers from revealing unflattering information about the bank, even if they are subpoenaed, according to prosecutors.

Bank of America says in court documents that the confidentiality agreements are not a requirement, and settlement agreements with consumers are “standard fare.”

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