Attorney General Eric Schneiderman announced today he will sue Bank of America and Wells Fargo for violating the National Mortgage Settlement reached last year.
Schneiderman said he’s received complaints from New York homeowners and therefore wrote a letter to the federal monitoring committee of his plans to sue Wells Fargo and Bank of America.
“The five mortgage servicers that signed the National Mortgage Settlement are legally required to take specific, rigorous, and enforceable steps to protect homeowners,” Schneiderman said in a statement. “Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure.”
Schneiderman in 2011 opposed an initial federal settlement with the banks over the mortgage meltdown. In January 2012, as part of a later $25 billion agreement with the banks, Schneiderman tapped as co-chairman of the Unit on Mortgage Origination and Securitization Abuses.
He warned that a delay in processing loan modifications—which provide lower interest rates to help homeowners stay in their houses—hurts people’s chances of staying in their homes.