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Schneiderman responds to report that Wells Fargo did not comply

By WILL ASTOR - 6/19/2013 3:55:47 PM

A bad report issued Wednesday on Wells Fargo & Co.’s compliance with National Mortgage Settlement terms bolsters his resolve to seek further action against the bank, New York Attorney General Eric Schneiderman said.

Schneiderman announced plans in May to seek enforcement actions against Wells Fargo and Bank of America Corp. for violating the mortgage settlement’s terms.

Reached among attorneys general of 48 states, the Department of Justice and five major banks in 2012, the settlement called on the banks to implement a variety of fixes to cure mortgage servicing ills. In addition to Wells Fargo and Bank of America, JPMorgan Chase & Co., Citigroup Inc. and Ally Financial Inc. are parties to the agreement. Terms include more than 300 standards meant to help homeowners facing foreclosure arrange loan modifications.  

“Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure,” Schneiderman said in May.

The report issued today by National Mortgage Settlement monitor Joseph Smith Jr. found Wells Fargo’s compliance wanting on those terms.

The monitor’s report “affirms that the pattern of violations by Wells Fargo that my office documented in New York is harming homeowners,” Schneiderman said.  

Schneiderman on Wednesday also cited alleged reports from whistleblowers at Bank of America as indicating that rather than complying with the national settlement the bank has encouraged improper delays of modification applications. 

Smith has yet to report on Bank of America’s compliance.

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