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