The ink is barely dry on the settlement ordered by the federal government to rein in the malpractice of large banking institutions, that its terms have already been violated.
New York Attny General Schneiderman has vowed to sue the banking giants BofA and Well Fargo after they were found to be in violation of the settlement terms under which they were ordered to adhere to strict standards of financing to avoid further penalties.
Other states have also found that the financial institutions have violated the terms in their territory and might follow suit. North Carolina Banking Commissioner John Smith, who monitors the banking giants' adherence to the terms has already been notified by the New York Attny General.
In the settlement terms the banks that had agreed to the settlement were supposed to provide homeowners with relief and comply with a set of servicing standards to make up for the conduct exhibited during the foreclosure disaster.
Schneiderman has declared that his office has already found 339 violations of standards since last October, of which 210 were attributable to Wells Fargo and 129 to BofA. In the letter by the Attny General are detailed the misconduct of the banking giants which according to the Attny General are much and the same as those recorded during the years of malfeasance that led to the banking crash and subsequent National Mortgage Settlement, or bailout, by the federal authorities.
In addition, Wells Fargo was found to have improperly delayed document review of requests for modification of distressed mortgages, so that the applicants had to resubmit the documents for review again. In some cases three months had passed without the bank so much as communicating a decision on the application or request for more information.
Source : Baltimore Sun 5.24.13
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