Wells Fargo and Bank of America have both been accused of breaking their refinancing terms as prescribed by last year’s mortgage settlement. Under the terms of last year’s national settlement, banks have 30 days to respond to all mortgage modification requests. By delaying their responses, Attorney General Eric Schneiderman says the banks are pushing homeowners closer to a situation that results in foreclosure.
Bank of America Not Helping Homeowner Debt
While Wells Fargo and Bank of America have so far not made a public comment, Attorney Schneiderman says he will sue for compliance if the committee doesn’t take action for the banks’ policies. The settlement within the continental United States includes other lenders such as JPMorgan, Citigroup, and Ally Financial. This new policy brought $25 billion of relief to homeowners across the country.
By replying in 30 days to mortgage modification requests, banks will be helping homeowners avoid foreclosure and stay current on their monthly payments. By either purposefully not complying or being inefficient in response time, both Bank of America and Wells Fargo are hurting American homeowners, says the Attorney General.
Since last year’s mortgage settlement, over 20,000 homeowners in New York alone have been helped by these new terms. Since October, both Bank of America and Wells Fargo have amassed 339 documented violations of these new refinancing terms. Whether or not the national monitoring committee decides to take action, Attorney General Eric Schneiderman says that he will ensure that these banks are held responsible for their actions.