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New York to sue Wells Fargo, Bank of America over mortgage practices

  • May 6, 2013 - 5:57 PM

– New York state’s attorney general plans to sue Wells Fargo

Attorney General Eric Schneiderman’s office said Monday it intends to sue the banks for “repeatedly violating the terms” of the settlement.

Schneiderman’s office said that since October, it has documented 339 violations of tightened standards aimed at helping homeowners in danger of losing their homes.

The $25 billion settlement provided relief for homeowners across the country who had been subjected to faulty foreclosure practices by major servicers.

The agreement also set new standards for mortgage-servicing operations and required some improvements in customer service. Among the standards are four cited by Schneiderman’s office that involve timelines for processing applications for mortgage modifications.

Wells Fargo declined to comment. A Bank of America representative did not immediately respond to a request for comment.

LOS ANGELES TIMES

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