Washington AG sues major foreclosure trustee

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OLYMPIA, Wash. (AP) -- 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 both the lender and the borrower. McKenna says the company's practices make it difficult for borrowers to halt foreclosures while working to save their homes.

McKenna says 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. The attorney general's office says it is investigating more than a dozen other trustees for suspected violations.