New York Attorney General Announces Lawsuit against Wells Fargo
New York Attorney General Eric Schneiderman announced a lawsuit against Wells Fargo on Wednesday. He is suing the bank for failing to comply with commitments from a 2012 mortgage settlement.
According to Schneiderman, Wells Fargo has failed to promptly respond to borrowers who are seeking loan modifications. He said delays and poor service cause them to fall deeper into debt and closer to foreclosure.
“Wells Fargo has been if not the, certainly one of the, most difficult banks all across America in dealing with homeowners,” Schneiderman said.
Mirza Baig, a Staten Island homeowner, said he is frustrated with Wells Fargo.
“I contacted Wells Fargo to do something, to modify my loan because I have no job anymore,” Baig said, “so they said ‘OK, we'll review your case’, and they did nothing. I mean, they never have a clear policy about anything.”
Wells Fargo was included in the National Mortage Settlement of 2012 that aimed to help people who had experienced foreclosure following the 2008 financial collapse, and prevent further foreclosures. The settlement established specific servicing requirements for major banks.
If Schneiderman wins the lawsuit, Wells Fargo will be required to provide faster and clearer service to clients requesting loan modifications, in compliance with the 2012 settlement.
Schneiderman announced a similar lawsuit against Bank of America earlier this spring. The bank has since agreed to make changes within the company to comply with the rules of the settlement. Schneiderman hopes to see Wells Fargo make similar adjustments.