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May 6, 2013

BofA, Wells Fargo and Others Getting Sued by NY AG

Category: Mortgage Relief News – admin – 11:12 am

The fallout over the home foreclosure crisis continues. New York Attorney General Eric Schneiderman announced their plans to sue Bank of America Corp and Wells Fargo and Co for violating the National Mortgage Settlement brokered last year between the country’s biggest banks and 49 state attorneys general. Schneiderman said that since last October he has documented 339 violations of standards dictating the timeline for banks to process mortgage modification applications. “Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure,” the attorney general said in a statement. There has been much criticism over the relaxed guidelines that encouraged bad credit mortgage refinances prior to the foreclosure crisis.

Representatives of the banks did not immediately return calls seeking comment. Schneiderman said he sent a letter to monitors for the National Mortgage Settlement informing them of his intent to sue the banks. He said he would seek an injunctive and an order requiring the banks to comply with the settlement.
Bank of America and Wells Fargo were among five banks that agreed to the $25 billion settlement in February 2012. The pact was supposed to curb abusive house foreclosure practices and was expected to help roughly one million borrowers. JPMorgan Chase & Co, Citigroup Inc and Ally Financial Inc were the other banks in the settlement. Read the original article from NBC News.



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