New York’s attorney general Monday accused Wells Fargo and Bank of America of violating the terms of last year’s national mortgage settlement by failing to process hundreds of refinancing requests promptly.
Attorney General Eric Schneiderman has notified the national monitoring committee established to enforce the five-bank agreement. If the committee defers taking action, Schneiderman said he will sue for compliance.
Schneiderman said delays put homeowners further into debt from missed payments and penalties, pushing them closer to foreclosure.
Wells Fargo and Bank of America were not immediately available for comment.
- Live updates from May Day in Seattle: Anti-capitalist protesters clash with police
- Good news about coconut oil, melatonin and turmeric
- 9 arrested, 5 officers hurt as May Day anti-capitalist march turns violent
- Visitors trash Washington island, so officials shut it down for good
- From best picks to the puzzlers, reviewing the Seahawks’ draft selections
Most Read Stories
Also Monday, Bank of America agreed to pay MBIA $1.7 billion to settle a dispute over faulty mortgage securities issued during the U.S. housing boom.
In exchange, the bond insurer will drop the litigation it brought against the mortgage lender Countrywide in 2008, according to a statement MBIA released Monday. Bank of America bought Countrywide in 2008.