This week, my office has taken legal action to hold two of the largest banks in the nation accountable for putting hundreds of New York homeowners at increased risk of foreclosure.
For a homeowner at risk of losing their home, time is the greatest enemy. Every day wasted going back and forth with the bank, re-submitting documents, and running in circles trying to get answers, is a day that they fall deeper in to debt, and edge closer to foreclosure.
That's why the National Mortgage Settlement that my office helped to negotiate last year with Ally Financial/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo included legally binding standards for how quickly these banks have to respond to applications for mortgage modifications.
But two of the banks that signed that settlement, Bank of America and Wells Fargo, flagrantly violated those standards. My office has documented 339 violations by these two banks, and Monday we announced that we will be suing them in federal court to force them to comply.
If a homeowner fails to dot an 'i' or cross a 't', the big banks don't cut them any slack. It's time for these multi-billion dollar institutions to be held to the same standard as the little guy.
Check out my interview on All In With Chris Hayes to learn more about the action we are taking to hold banks accountable to their promises, and protect New York homeowners.
Sincerely,
Eric T. Schneiderman
New York Attorney General