Wells Fargo Not Excused From Obligations Due To Hurricane Sandy – NY Attorney General

EricrnT. Schneiderman, New York State Attorney General, told Wells Fargo Bank today thatrnit could not use Hurricane Sandy to excuse itself “from any of its obligationsrnunder the National Mortgage Settlement or under New York law.”  The warning came after Schneiderman receivedrnword the bank had temporarily suspended review of and decisions on applicationsrnfrom homeowners throughout the Northeast for mortgage relief “in order to awaitrnfurther instructions from FEMA.”  </p

Inrna letter sent today to John G. Stumpf, Wells Fargo’s Chairman,rnPresident and CEO, the Attorney General told the bank it must reverse its newrnpolicy where it affects applications from New York homeowners “many of whom arernstill struggling to recover in the aftermath of Hurricane Sandy.”  Schneiderman said the bank’s directive likelyrnviolates the terms of the National Mortgage Settlement which Wells Fargo andrnfour other major banks made with 49 State Attorneys General and the Departmentrnof Justice.  The settlement mandatesrnlender compliance with a number of servicing reforms, including swift reviewrnand response timelines for borrowers seeking mortgage modifications and otherrnforms of relief.</p

Schneiderman’s letter said in part, “Irnam certain that you are aware that under the National Mortgage Settlement, asrnwell as under pre-existing NY State law, Wells Fargo is required</ito adhere to strict timelines when evaluating a homeowner's request for a loanrnmodification. Specifically, Wells Fargo is required to make a decision about arnhomeowner's loan modification request within 30 days of receiving a completedrnapplication package. Wells Fargo’s decision to delay review will likely resultrnin multiple violations of the National Mortgage Settlement.”</p