The New York attorney general is threatening to sue Bank of America and Wells Fargo for allegedly failing to keep up with the timetables for completing loan modifications under the national mortgage settlement.
But the two giant servicers claim they are trying to comply with the spirit of the settlement agreement and continue to support it.
“Wells Fargo is committed to full compliance with the national mortgage settlement and its associated standards. It is unfortunate that the New York attorney general has chosen this route rather than engage in a constructive dialogue through the established dispute resolution process,” the bank said in response to the AG’s announcement Monday afternoon.
Eric Schneiderman, the New York attorney general, alleges Wells Fargo has committed 210 violations of the settlement agreement since October 2012 and B of A has committed 129 violations.
“Attorney General Schneiderman has referenced 129 customer servicing problems which we take seriously and will work quickly to address. This agreement has been good for New York, and we continue using these beneficial programs to assist troubled homeowners in New York and nationally,” Bank of America said.
“Through March we have provided relief for more than 10,000 New York homeownersthrough the national mortgage settlement, totaling more than $1 billion,” B of A added.
The settlement agreement specifies time frames for notifying borrowers that the loan modification application has been received, if there are missing documents, and for making a final decision.
The New York AG contends delays in approving loan modifications increases the likelihood distressed borrowers will fall further into arrears and lose their homes.
“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 at a press conference Monday.
“I intend to use every tool available to my office to hold these companies accountable under the
