New York Attorney General Eric Schneiderman said there is mounting evidence thatBank of America Corp (BAC.N), Wells Fargo and Co (WFC.N) 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.
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The $25 billion settlement was brokered last year between five [/FONT]
banks[FONT=arial, helvetica, sans]
and 49 state attorneys general. The other banks are JPMorgan Chase & Co ([/FONT]
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), [/FONT]
Citigroup Inc[FONT=arial, helvetica, sans]
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), and Ally Financial Inc ([/FONT]
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). The banks agreed to provide relief to homeowners and comply with a set of servicing standards to atone for foreclosure misconduct.[/FONT]
At the time, Schneiderman 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.
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