Schneiderman claims BofA, Wells Fargo violated mortgage settlement terms

TRD New York /
May.May 06, 2013 02:30 PM

New York Attorney General Eric Schneiderman today announced his plans to sue Bank of America and Wells Fargo for allegedly violating the terms of the national mortgage settlement — the $26 billion deal that resolved wide-ranging litigation over the banks’ supposed foreclosure abuses, HousingWire reported.

The suit would be the first since the agreement was signed in October 2012, according to Schneiderman’s office.

Among the provisions of the settlement was a requirement that the nation’s five largest mortgage servicers improve customer service practices by dictating a timeline for banks to process mortgage modification applications. But Bank of America and Wells Fargo have failed to uphold the agreement in a collective 339 instances, Schneiderman claimed.

“The five mortgage servicers that signed the national mortgage settlement are legally required to take specific, rigorous and enforceable steps to protect homeowners,” Schneiderman said in a release. “Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure.”

Bank of America said they have provided relief worth $1 billion for more than 10,000 homeowners in New York through March, the company said in a statement to HousingWire.

“Attorney General Schneiderman has referenced 129 customer servicing problems which we take seriously and will work quickly to address,” the bank told HousingWire.

Wells Fargo did not immediately respond to HousingWire’s request for comment. [HousingWire]Zachary Kussin


Related Articles

arrow_forward_ios
55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Clockwise from left: 10 Jay Street, Rochdale Village and 46-06 57th Avenue (Credit: Google Maps)

These were the top 10 outer borough loans last month

From left: Brookfield's Ric Clark, 3333 Broadway and L+M's Ron Moelis (Credit: Brookfield, L+M, StreetEasy)

L+M, Invesco close on Putnam portfolio with $823M in Wells Fargo financing

Clockwise from the top left: Jackson Park at 28-40 Jackson Avenue, 240 Willoughby Street in Fort Greene, 664 Pacific Street in Brooklyn, and 247 Metropolitan Avenue in Williamsburg (Credit: StreetEasy, Google Maps, Pacific Park Brooklyn, The Pod Hotel)

These were the top 10 outer-borough loans last month

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

One Bryant Park (Credit: The Durst Organization)

Bank of America leads $1.6B refi for tower named after it at One Bryant Park

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

MCR Development CEO Tyler Morse and a rendering of TWA Flight Center

Revamped TWA Flight Center at JFK lands $270M loan

arrow_forward_ios