Bank of America and Wells Fargo to be sued by New York
Source: BBC
New York's attorney general has said he plans to sue major lenders Bank of America and Wells Fargo for violating a $25bn (£16bn) mortgage settlement.
Eric Schneiderman said the two had not done enough to help protect homeowners.
A total of five US lenders agreed the National Mortgage Settlement with authorities last year, designed to reshape lending practices following the collapse of the US housing market.
...
Mr Schneiderman said his office had documented hundreds of instances where Wells Fargo and Bank of America had failed to process refinancing requests from mortgage holders quickly enough, putting them at greater risk of foreclosure.
Read more: http://www.bbc.co.uk/news/business-22428600
elleng
(130,956 posts)DU not interested?
http://www.democraticunderground.com/101662779
louis-t
(23,295 posts)They are running the show, lest anyone forget.
droidamus2
(1,699 posts)I was unemployed and running out of money so I applied for a refinance to see if I could get the payments to a level I could pay. I couldn't walk away from the home because I had put 50% down and did not want to lose the investmen.
Since any back payments owed would be rolled into the new loan I was't (actually couldn't) pay the payments. Nine months later they came back and said i didn't qualify and told me they were going to foreclose.
Fortunately unlike many people in this country I was able to get into a good training/job program and about the time I was going to start work B of A approached me with a chance to get a new 40 year fannie Mae loan. I was able to scratch together the money to make the three trial payments and get my home out of foreclosure. With a little more understanding and help the whole mess could have been avoided.
JDPriestly
(57,936 posts)The banks will recoup all the money they pay in fines. They will take it out of depositors accounts. The fines do not solve the problem. They just punish depositors because the banks have to pay lower interest rates and charge customers higher fees to pay off the fines.
This does not punish the bankers. Take away their right to run banks and earn their livings. Take away their homes. But sue them? Make them pay damages? Useless. They don't pay the fines with their own money. They pay them with other people's money, the money of people who had nothing to do with the banks' crimes and neglect.
droidamus2
(1,699 posts)I got my check from the settlement the other day. For 18+ months of hell wondering when I was going to get kicked out of my home. All this with a wife that was on dialysis for end stage kidney failure and I get a whopping $300.00 for my trouble. I guess it is better than nothing but not by muc.
forestpath
(3,102 posts)probably
AtheistCrusader
(33,982 posts)And the subsequent dismissal from his post, hand-wringing, and all that.