Florida Attorney General Pam Bondi sent a letter to Bank of America this week with concerns over its compliance with the National Mortgage Settlement.
The letter addresses several alleged violations, including failing to comply with the settlement’s dual-tracking restrictions, which bar banks from moving forward with a foreclosure while working on a loan modification.
Other concerns include lengthy loan modification application processes, failing to assign each borrower a single person to work with, and failing to oversee foreclosure attorneys to ensure they have updated and accurate information.
“It is deeply concerning to me that it takes my staff’s direct involvement to get results I would expect to be achieved under the settlement without any facilitation on our part,” Bondi wrote. “Even more concerning are the troubling patterns that are emerging from our review of complaints, clearly pointing to possible larger systemic problems regarding Bank of America’s implementation of the settlement’s servicing standards.”
Bondi was a lead negotiator on the $25 billion settlement signed between the nation’s attorneys general and its five largest lenders.
A report is expected this month from the monitor of the settlement, who has also said he’s received hundreds of complaints about lender customer service.
Bank of America said in its response to Bondi’s letter that it has “has extended more relief under the National Mortgage Settlement to customers in need of assistance than all other servicers combined, representing nearly 60% of relief across the program. We take seriously and work quickly to address any problems brought to our attention.”
In August, Bondi appointed a full-time analyst whose sole charge is to assist homeowners with the settlement, act as a liaison between borrowers and banks and forward complaints to the monitor’s office, said Jenn Meale, communications director.
Bondi’s office has amassed 293 complaints, including 21 from Palm Beach County.
“If a citizen believes they are not being treated fairly by one of the banks, we ask that they contact our office as the banks will be held accountable,” Meale said.
New York Attorney General Eric Schneiderman announced plans last month to sue Wells Fargo and Bank of America for failing to improve their modification time lines.
Schneiderman said he’s documented 339 violations since October. Since the announcement, his office has received more complaints, which it plans to add to its lawsuit, said Schneiderman spokesman Damien LaVera.
This entry was posted
on Friday, June 7th, 2013 at 7:15 am and is filed under Florida economy, Foreclosures, Mortgage fraud, Mortgages, Real estate bust.
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