New York AG Sues Wells Fargo, Gains Agreement with B of A over Mortgage Modifications

Oct 2, 2013

Wells Fargo the target of lawsuit from NYAG Eric Schneiderman
Wells Fargo the target of lawsuit from NYAG Eric Schneiderman
Credit NPR.org

Two big banks are in the sights of New York Attorney General Eric Schneiderman.  He says Bank of America and Wells Fargo put up barriers and string-out people who are trying to get mortgage modifications. 

His office got complaints from across the state suggesting they are the worst in working with homeowners who need help.  But Schneiderman got very different reactions from them.

“Bank of America chose to acknowledge the problems and to enter into a written agreement with us to impose additional standards to make sure the homeowners get the relief they were intended to get under the national mortgage settlement”

Meanwhile Wells Fargo wasn’t ready to play along.

“They essentially refused to acknowledge they have a problem; they refused to enter into a signed agreement; and they in fact, all they did was send a letter offering voluntary changes, not even acknowledging their procedures have problems.  Their communication with customers is terrible.”

Schneiderman praised a deal with B-of-A, where they’ll reduce the time for mortgage changes, let homeowners speak more directly with decision makers, and improve communication.  On the other hand, he plans to sue Wells Fargo for not living up to the National Mortgage Relief Settlement.