Written by South Carolina Foreclosure Defense Attorney Kristina G. Pierce
According to New York AG, Wells Fargo is still involved in foreclosure abuses
In February of 2012, in an attempt to stop, or at least slow, foreclosure abuse and robo-signing practices, Wells Fargo, Bank of America, JP Morgan Chase, Ally Financial, and Citigroup entered into the National Mortgage Settlement where they would pay over $25 billion to 49 states and the Justice Department for abusive foreclosure and lending practices. The money was to be disbursed by direct payments to homeowners and through debt forgiveness on loans for homeowners who applied for loan modifications.
New York AG Files Suit Against Wells
However, on October 2, 2013, New York Attorney General Eric Schneiderman filed a lawsuit against Wells Fargo for numerous cases in the State showing continued foreclosure and lending abuse practices by Wells Fargo. The lawsuit alleges that Wells Fargo has violated the 2012 settlement by failing to acknowledge receipt of loan modification applications and to adhere to a the time period for processing the modification applications.
In the complaint filed by Schneiderman, his office specifically cites 210 violations against 96 different borrowers in the State of New York alone. This lawsuit comes after Schneiderman threatened both Wells Fargo and Bank of America with lawsuits earlier in the year if they did not promise to reform their practices, and to abide by the terms set forth in the 2012 National Mortgage Settlement.
It appears that Schneiderman was going to include Bank of America in the lawsuit, but Bank of America reached a settlement agreement with the State of New York. Bank of America has promised to improve its mortgage servicing practices, including its customer service and communications system. Stay tuned for updates regarding this lawsuit.