New York Attorney General Eric Schneiderman plans to sue Wells Fargo (WFC) for violating the 2012 National Mortgage Settlement and has reached an agreement with Bank of America (BAC) to comply with several new mortgage servicing standards.

Both companies have failed to satisfactorily reform their loan modification and foreclosure practices under the terms of the settlement, Schneiderman said at a Wednesday press conference. "They receive more servicing complaints" than any other lender in New York, he said.

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