New York claims more proof of bank mortgage abuses

he logo for Wells Fargo bank is pictured in downtown Los Angeles, California July 17, 2012. REUTERS/Fred Prouser
he logo for Wells Fargo bank is pictured in downtown Los Angeles, California July 17, 2012. REUTERS/Fred Prouser

New York Attorney General Eric Schneiderman said there is mounting evidence that Bank of America Corp, Wells Fargo and Co and other banks violated the terms of a settlement designed to end mortgage servicing abuses.

Schneiderman – who has said he plans to sue Bank of America and Wells Fargo for failing to live up to their obligations under the deal – said other states had found similar problems.

“Several other states have identified similar recurring deficiencies by the participating servicers,” Schneiderman said in a letter dated May 23 to the monitor for the settlement, former North Carolina Banking Commissioner Joseph Smith. The letter was obtained by Reuters on Friday.

The $25 billion settlement was brokered last year between five banks and 49 state attorneys general. The other banks are JPMorgan Chase & Co, Citigroup Inc, and Ally Financial Inc. The banks agreed to provide relief to homeowners and comply with a set of servicing standards to atone for foreclosure misconduct.

In his letter, Schneiderman did not identify which other states had provided evidence of banks failing to abide by the settlement. Nor did he identify the banks with recurring deficiencies.

He said his letter to Smith and a concurrent one to a monitoring committee had started the clock on a waiting period before lawsuits could be filed against the banks. The settlement authorizes the monitor to first work with a mortgage servicer to correct any potential violations and sue if the servicer does not fix the errors.

Schneiderman said on May 6 he planned to sue Bank of America and Wells Fargo when the waiting period was over.

Bank of America has said it did not commit any violations. Wells Fargo said it was committed to abiding by the settlement. Spokespeople for the two banks were not immediately available for comment on Friday.

Schneiderman has said that, since last October, his office had documented 339 violations of standards – 210 by Wells Fargo and 129 by Bank of America – dictating the timeline for banks to process mortgage modification applications.

(Editing by Andrew Hay)


News
Entertainment
Sports
Lifestyle
National

Rubin 'Hurricane' Carter died Sunday from prostate cancer…

Former U.S. professional boxer Rubin "Hurricane" Carter, who spent 19 years in prison for murder and then was released after it was determined he did not get a fair trial,…

National

Florida man charged with murdering son to play…

A Florida man annoyed that his 16-month-old crying son was preventing him from playing video games suffocated the toddler, police said on Friday.

International

Powerful 7.2 magnitude earthquake rattles Mexico

A powerful earthquake struck Mexico Friday, shaking buildings and sending people running into the street, although there were no reports of major damage.

News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

Television

'Orphan Black' recap: Episode 1, ‘Nature Under Constraint…

Welcome to your first Season 2 “Orphan Black” recap! Hopefully Tatiana Maslany can help Tatiana Maslany get through this, with the help of Tatiana Maslany,…

Entertainment

Whoopi Goldberg makes her debut as marijuana columnist

"It helps my head stop hurting, and with glaucoma your eyes ache, and she takes the ache out. It's wonderful," she said.

The Word

Kate Middleton made fun of Prince William's bald…

Kate Middleton and Prince William are in Sydney, Australia, right now, and it sounds like that brash Aussie sense of humor might be rubbing off.

The Word

Is Tom Cruise dating Laura Prepon?

"Mission: Impossible" star Cruise is said to be dating Laura Prepon, star of "Orange is the New Black."

MLB

Phillies notebook: Cole Hamels returns this week

The Phillies should receive a big boost when Cole Hamels returns during the Dodgers series.

MLB

Jimmy Rollins is key to Phillies success

When John Kruk was asked about what the Phillies need to contend for a playoff berth, the ESPN analyst said Jimmy Rollins needs to play like a MVP again.

MLB

Ben Revere lifts Phillies to avoid sweep

Ben Revere came through with a two-out RBI single against Atlanta’s tough lefthander Alex Wood.

NBA

Season wrap: 76ers make the grade

The 76ers opened the 2013-14 season with a victory over the Miami Heat. The Sixers closed the season with a win at Miami.

Parenting

Is camp right for introverts?

We ask an expert for tips on sending your introverted child to camp

Parenting

How to parent without gender stereotypes in a…

Christia Spears Brown, Phd. author of "Parenting beyond Pink & Blue" gives advice on raising kids free of gender stereotypes.

Tech

VIDEO: 'Vein-scanning' may become the future of paying

Designed to make transactions quicker and easier, the technology works by scanning the unique vein patterns in each person's palm.

Tech

#FollowFriday: 10 of the smartest Twitter accounts

Spending lots of time on Twitter? You might as well learn something. Here are some of the smartest accounts to follow.