Saturday, November 17, 2012

30 day decision

"Wells Fargo may be violating the terms of a recent foreclosure-abuse settlement at the expense of Hurricane Sandy victims, New York's attorney general said Friday.

     Attorney General Eric Schneiderman addressed his two-page letter to Wells Fargo president John Stumpf, at his corporate offices in San Francisco.

     He said that "a number of legal service providers" have reported that Wells Fargo plans to suspend "all Home Preservation reviews and decisions" in the wake of the storm, until the bank receives guidance from the Federal Emergency Management Agency.

     Schneiderman warned Stumpf that this position violates a national mortgage settlement Wells Fargo signed in March.

     "Specifically, Wells Fargo is required to make a decision about a homeowner's loan modification request within 30 days of receiving a completed application package," the letter states. "Wells Fargo's decision to delay review will likely result in multiple violations of the National Mortgage settlement.

     "Please be advised that Wells Fargo is not excused from any of its obligations under the National Mortgage Settlement or under New York law as a result of Hurricane Sandy, and that my office will aggressively pursue any loan servicing company that uses this tragic event as an excuse to violate loss mitigation decision timelines."

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