New York Atty General Eric Schneidermann said that his office has been gathering mounting evidence that Bank of Americ Corp, Wells Fargo as well as other banks had violate the terms of a settlement agreement that was put in place to stop mortgage servcing abuse.
Schneidermann had said that other states found similar violations and is now collating evidence to be used for a suit against these banks for their failure to comply with the stipulations in that aghreement.
In a letter dated last May 23 addressed to Joseph Smith, the former NC Banking Commissioner monitoring the settlement, he said "Several other states have identified similar recurring deficiencies by the participating servicers."
Last year, a US$25 billion settlement was brokered by five banks and 49 state attorneys generals. Aside from BoA and Wells Fargo, also participating were JPMorgan Chase, Citigroup and Ally Financial. The banks had agreed to provide financial relief to the homeowners as well as comply with a set of standards for servicing as a means to penance for the misconduct previously committed during foreclosures.
Join the Conversation