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N.Y. to sue Bank of America, Wells Fargo over alleged violations of mortgage deal

• Danielle Douglas via The Washington Post
 New York Attorney General Eric Schneiderman on Monday threatened to sue Bank of America and Wells Fargo for allegedly failing to help struggling homeowners under the $25 billion national mortgage settlement.

Schneiderman was one of 49 attorneys general to negotiate the sweeping deal with the nation’s five largest mortgage servicers over foreclosure abuses last year. If the banks do not comply, Schneiderman said, he will file suit and ask for a court injunction.

New York’s top prosecutor said he received 339 complaints that the behemoth banks were dragging their feet in processing requests from homeowners to have their loan payments lowered — a direct violation of the settlement. The banks allegedly failed to respond to requests from borrowers to have their mortgage balance or interest rates reduced within the 30 days allotted in the settlement, and some borrowers weren’t allowed to submit missing documentation.

“Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure,” Schneider­man said in a statement. “I intend to use every tool available to my office to hold these companies accountable.”

1 Comments in Response to

Comment by Stupid Amerkin
Entered on:

It's one thing to sue and win a case, but it's another issue to collect. So if N.Y. sues these banksters and wins some kind of monetary win, who gets the winnings?

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