Banks Violate $26 Billion Mortgage Settlement

By on May 7, 2013

New York Attorney General Eric Schneiderman announced that he would sue Bank of America and Wells Fargo for repeatedly violating the terms of the $26 billion mortgage settlement. The original settlement named the National Mortgage Settlement was agreed upon by 49 state attorneys general with five of the nation’s largest banks.

The terms of the settlement were aimed at stopping the plummeting housing market and providing relief to struggling and frustrated homeowners by providing for the banks to improve their servicing standards.  During the epic mortgage debacle many homeowners seeking relief in modifying their mortgage and preventing foreclosure were unable to reach appropriate bank representatives and were repeatedly requested to send the same documents that the banks continued to misplace.

Attorney General Schneiderman announced that since October of 2012, his office found 210 separate violations against Wells Fargo and 129 involving Bank of America.  This will be a test of enforcement against corporate America, which hopefully other attorneys general will follow.  Many civil class actions continue to be pursued on behalf of homeowners as well.