New York to Sue BofA, Wells

In a statement just released yesterday, the NY state attorney general, Eric Schneiderman, has announced plans to sue both BofA and Wells Fargo for alleged violations related to the pace of loan modifications agreed to under the February 2012 foreclosure settlement with leading lenders. The AG cited 339 service violations related to the timeline for processing loan mods. Schneiderman's office cited four areas of violation: "four servicing standards mandated under the settlement that the banks allegedly violated, one of which requires the servicer to make a loan modification decision within 30 days of receiving a complete mod application. Another requirement allows the borrower 30 days to submit missing documents or correct issues found in the loan modification application. Borrowers must also receive written acknowledgement regarding receipt of a loan modification application within three business days, and servicers must notify borrowers of all missing documents in the submitted mod application within five business days of receipt." BofA issued a response that they take these accusations seriously and will work to resolve them, while Wells had no comment at present. So, if you're in NY State and have mortgage or loan mod issues with BofA or Wells, you may want to chat with AG Schneiderman's office. Good Luck.