Breaking News


Wells Fargo Seeks to Toss N.Y. Action on Mortgage Deal

Wells Fargo & Co. (WFC) said New York’s bid for a court order forcing the bank to comply with a mortgage-servicing settlement should be denied because the state is ignoring terms of the $25 billion agreement.

New York Attorney General Eric Schneiderman is attempting to make an “end-run” around the mechanism for testing whether banks are complying with the settlement and for fixing violations, Wells Fargo said in a filing today in federal court in Washington.

“The entire agreed-upon enforcement process -- which was precisely intended to avoid costly litigation -- would be rendered a nullity” if the state’s claims are allowed to proceed, the lender said.

Schneiderman claims San Francisco-based Wells Fargo violated the 2012 settlement by subjecting homeowners to delays and obstructions in the process for modifying mortgage loans. Wells Fargo was among five mortgage servicers that reached the agreement with the U.S. and 49 states.

The case is U.S. v. Bank of America Corp., 12-cv-00361, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: David McLaughlin in Washington at

To contact the editor responsible for this story: Michael Hytha at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.