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New York Attorney General Eric Schneiderman is revising his allegations of foreclosure settlement violations by Wells Fargo (WFC) and Bank of America (BAC), resetting the clock on his plans to sue the banks over 339 alleged servicing violations.
May 17 -
New York Attorney General Eric Schneiderman stands alone in announcing a lawsuit against Bank of America and Wells Fargo for violations of the $25 billion mortgage settlement. But that may soon change.
May 6
Florida's attorney general has threatened to sue Bank of America (BAC) for violating the national mortgage settlement.
Attorney General Pam Bondi's office has uncovered "troubling patterns" that suggest "systemic problems" with B of A's compliance with its portion of the $25 billion settlement, she warned in a letter. Last year the five biggest servicers agreed to provide relief to homeowners harmed by poor servicing practices.
If B of A fails to remedy these failures, Bondi's letter says, "then litigation is likely the best option, and one I remain prepared to pursue."
New York Attorney General Eric Schneiderman said he
Bank of America said in an email Friday that it "take[s] seriously and work[s] quickly to address any problems brought to our attention," noting that it "has extended more relief under the National Mortgage Settlement to customers in need of assistance than all other servicers combined."
Bondi's letter was sent June 4 and
B of A has failed to provide timely loan modification to Florida borrowers and refuses to specifically respond to the AG's requests for information, both violations of the National Mortgage Servicing Settlement, Bondi's letter says. The settlement requires servicers to provide substantive written responses to requests from states and to adhere to specific time frames in providing loan modifications.
Of the 293 complaints Bondi's office has received, 39% relate to Bank of America, her letter says. The majority are complaints about customer service, such as the lengthy delays in processing applications for loan modifications, failures to respond to customers' inquiries and mishandling of paperwork.
Neither Bondi's office nor the Office of Mortgage Settlement Oversight provided comment on the letter or on Bank of America's compliance with the settlement.
