From CBS News:

(MoneyWatch) New York State's attorney general is suing Bank of America (BAC) and Wells Fargo (WFC) for violating the terms of a $26 billion mortgage settlement.

The banks have not complied with standards established for processing homeowners' loan modification applications, New York Attorney General Eric Schneiderman said in a statement released today. He said he plans to sue the banks unless a monitoring committee set up to enforce the settlement's terms takes action.


Schneiderman claims BofA and Wells Fargo failed to acknowledge receipt of loan modification applications within three business days; did not tell homeowners about missing documents in their applications; didn't give borrowers enough time to correct deficiencies; and failed to take action on loan modification requests within 30 days. He said these delays would result in additional fees and interest and in homeowners' losing their homes.


AG Schneiderman spoke about this moments ago, live, on All In with Chris Hayes (MSNBC). He said that the banks pull this crap because they are convinced that the authorities won't punish them.

He said that consequently, the banks were taken by surprise by this latest action.


From shrike in the comments:

* [new]  Just in today, BoA to pay $1.6 billion (1+ / 0-)

Bank of America has some $20-60 billion more in settlements before it gets out of the deep shit.

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