Reuters: U.S.: Exclusive: New York claims more proof of bank mortgage abuses

Reuters: U.S. Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Exclusive: New York claims more proof of bank mortgage abuses May 24th 2013, 18:34 Tweet Share this Email Print Related News BofA sells $110 billion CMBS servicing rights portfolio to KeyBank Thu, May 9 2013 New York to sue BofA, Wells Fargo over mortgage practices Mon, May 6 2013 MBIA, Bank of America reach $1.6 billion cash settlement Mon, May 6 2013 Analysis & Opinion Bank governance stigma can be fixed lickety-split How much does Jamie Dimon matter? The logo for Wells Fargo bank is pictured in downtown Los Angeles, California July 17, 2012. Credit: Reuters/Fred Prouser By Karen Freifeld NEW YORK | Fri May 24, 2013 1:19pm EDT NEW YORK (Reuters) - 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) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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