The state of Nevada filed a lawsuit against Bank of America that claims the bank and Countrywide Financial Corp. engaged in a pattern and practice of deceptive conduct at almost every stage of the mortgage writing process, according to a New York Times report.

The suit stated that borrowers were missled into unaffordable loans and then victimized once again via a misleading mortgage modification program that homeowners tried to use to avoid foreclosure.

Finally, the suit alleged that the bank filed fraudulent documents to move ahead with the foreclosures.

"Taken together and separately, [Bank of America's] deceptive practices have resulted in an explosion of delinquencies and unauthorized and unnecessary foreclosures in the state of Nevada," the suit stated.

The state of Nevada had previously diled a suit on the loan modification process, although expanding the suit to include all aspects of the mortgage writing process will mean that the state is likely to reject any settlement in the near future on the foreclosure issues.

New York's Attorney General Eric Schneiderman made similar charges earlier this month  who filed an intervention on the BofA settlement with the New York courts on behalf of investors who claim the terms of the agreement are unfair.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.