NEW YORK: New York Attorney General Eric Schneiderman yesterday said he plans to sue Bank of America Corp (BofA) 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.
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 injunctive relief and an order requiring the banks to comply with the settlement.
BofA and Wells Fargo were among five banks that agreed to the $25bn settlement in February 2012. The pact was supposed to curb abusive foreclosure practices.
Reuters
