Schneiderman to Sue BofA, Wells Fargo Over Settlement Violations

by devteam May 7th, 2013 | Share

New York Attorney General Eric Schneiderman announced at a press conferencernthis afternoon that his office will be suing Bank of America Corp (BOA) andrnWells Fargo and Co for violating the $25 billion settlement they agreed to onernyear ago.  Reports are that the suitrncould be filed within the next two months.</p

Schneider said his office has documented 339 violations of standards</bestablished by the settlement that dictate the timeline for banks to processrnapplications for mortgage modifications. rnWells Fargo has 210 alleged violations and BOA 129. </p

The National Mortgage Settlement involved three other banks in addition tornWells Fargo and BOA.  It settled claimsrnand lawsuits with 49 state attorneys general and several federal regulatoryrnagencies.  In addition to the cashrnsettlement the banks agreed to cut mortgage debt amounts, restructure troubledrnloans, and meet new servicing standards. rnJoseph Smith, former North Carolina Banking Commissioner who heads the settlementrnmonitoring committee is expected to report within the next few weeks on progressrnmade by the five servicers in meeting the settlement terms. .</p

Under the settlement any of the several parties can bring action against thernbanks after a 21 day notice to the monitoring committee.  Schneiderman said he has informed therncommittee of his intentions and the committee has the right to proceed on litigationrnof its own or defer to his suits.   </p

Schneiderman did not comment on whether the other three banks involved inrnthe settlement, JPMorgan Chase, Citigroup, and Ally Financial, were performingrnunder the lawsuit to New York’s satisfaction.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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