Arizona Attorney General Terry Goddard filed a lawsuit against Bank of America Corp. Friday, claiming the country's largest mortgage servicer's handling of loan modifications constitutes consumer fraud.

The suit, filed in Maricopa County Superior Court, also alleges that the Charlotte bank has violated a consent judgment entered into in 2009 between the state and Countrywide Financial Corp., which Bank of America bought in 2008. Following an investigation into Countrywide's origination and mortgage marketing practices, Countrywide agreed to develop a loan modification program for borrowers in Arizona.

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