Wells Fargo sued for mortgage settlement violations
Oct. 3, 2013 – New York’s attorney general yesterday filed suit against Wells Fargo & Co. for failing to comply with a $25 billion national mortgage settlement aimed at compensating consumers for illegal and abusive mortgage servicing practices during the housing downturn.
Reuters also reported that Bank of America had come to an agreement with the state’s attorney general in connection with similar allegations.
The national mortgage settlement involves Bank of America, JPMorgan Chase & Co., Wells Fargo & Company, Citibank and Ally Financial (which was formerly GMAC). It was negotiated among the Justice Department and state attorneys general, with help from federal banking, consumer protection and housing finance regulators, to correct alleged abuses.
National mortgage settlement