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BofA, Wells Fargo to Be Sued by N.Y. Over Mortgage Accord

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BofA, Wells Fargo to Be Sued by New York Over Mortgage Accord
Pedestrians walk past the Bank of America Corp. Tower in New York. Photographer: Victor J. Blue/Bloomberg

May 6 (Bloomberg) -- Bank of America Corp. and Wells Fargo & Co. will be sued by New York for allegedly violating terms of a $25 billion nationwide settlement over foreclosure practices.

New York Attorney General Eric Schneiderman has documented 339 violations since October 2012 of the settlement reached last year with 49 states and the federal government, the office said in a statement today.

Bank of America and Wells Fargo were among five lenders that entered into the settlement, which established mortgage servicing standards and provided mortgage relief to homeowners. Citigroup Inc., JPMorgan Chase & Co. and Ally Financial Inc. were also part of the settlement.

The agreement stemmed from a probe by state attorneys general into claims of abusive foreclosure practices following the collapse of the housing bubble.

Dan Frahm, a spokesman for Charlotte, North Carolina-based Bank of America, and Vickee Adams, a spokeswoman for San Francisco-based Wells Fargo, didn’t immediately respond to emails seeking comment about New York’s announcement.

Schneiderman has a press conference planned for later today.

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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