New York State Sues Bank Of America For Mortgage Abuses

August 5, 2013 By Elliot S. Schlissel

New York State Attorney General Eric T. Schneiderman has brought law suits against Wells Fargo and Bank of America for violations of the National Mortgage Settlement. Mr. Schneiderman has stated there are more than 339 instances where these banks failed to adhere to standards designed to protect borrowers who apply for mortgage modifications.

Mr. Schneiderman stated at a recent news conference “Wells Fargo and Bank of America have flagrantly violated their obligations under the settlement.” In his interview he said that homeowner’s have been faced with “banks, who in some cases, never even bothered to respond or correct errors in applications on mortgage modifications.”

Nationwide Settlement

In the nationwide settlement, 5 large banks agreed to pay $25 billion in damages to mortgage holders and follow a course of conduct involving loan servicing standards which were designed to protect homeowners. Attorney General Schneiderman said the standards were designed to speed up the process for home loan modifications.

About The Author

Elliot S. Schlissel, Esq. is a foreclosure attorney. He has previously been the President of the Commercial Lawyers Conference of New York, a regional Bar Association. He has extensive experience in helping homeowners with mortgage modifications, foreclosure law suits and other bank related problems.