Wells Fargo, Bank of America Sued for Mortgage Violations by New York (Video)

New York Attorney General Eric Schneiderman announced plans today to file a lawsuit against Wells Fargo and Bank of America for allegedly violating a mortgage settlement reached by the Department of Justice, Department of Housing and Urban Development and 49 state attorneys general last year.

The $25 billion dollar settlement was agreed upon after it was reported that Wells Fargo and Bank of America were illegally using paperwork signed by machines, “robo-signing,” to foreclose on homeowners. Wells Fargo also reportedly hired temps to sign foreclosures, who had no idea what they were signing.

According to the Washington Post, Schneiderman claims that Wells Fargo and Bank of America allegedly did not respond to borrowers who requested to have their mortgage balance or interest rates reduced, as required under the settlement.

Appearing on MSNBC's "All in With Chris Hayes" tonight, Schneiderman said that the banks do not fear law enforcement.

"We determined pretty quickly that Wells Fargo and Bank of America were far ahead of the the other banks as far as violations go," said Schneiderman. "We had 220 complains about Wells and 129 about Bank of America, we're taking them to court."

“The problem is the banks have overwhelming confidence that law enforcement is not taking this seriously. They have overwhelming confidence that whatever the rules are, they won’t be followed up on.”

“Keep in mind, these are the same guys who issued all the mortgage-backed securities to get us into this mess in first place and lost, we lost $7.4 trillion in home equity, that’s why we’re dealing with so many foreclosures," added Schneiderman.

Source: NY.gov, MSNBC, Washington Post


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