Wells Fargo has joined Bank of America on Florida Attorney General Pam Bondi’s list of possible violators of the $25 billion National Mortgage Settlement.
Last week, Bondi wrote a stern letter to Bank of America with examples of homeowner concerns and problems her own attorneys have had in trying to help borrowers who are covered by the settlement. The letter preceded a June 5 meeting with the lender.
But last month, the attorney general’s office also met with Wells Fargo representatives in Chicago to discuss “concerns about potential compliance issues surfacing in borrower complaints received by my office as well as other states.”
In a letter sent Friday to Wells Fargo, Bondi asks that the company let her office know by Wednesday when it will have a plan on how to answer those concerns.
“Wells Fargo committed at the meeting to provide the states more detail about the steps banks will take in response to complaints and to improve compliance with the Settlement’s Servicing Standards,” the letter states. “To that end, I ask that you let us know by Wednesday, June 12, when we may expect a response from Wells Fargo regarding how you will be substantively addressing our concerns.”
Bondi said 65 of the 293 complaints forwarded to the independent monitor of the National Mortgage Settlement were about Wells Fargo.
Potential violations of the settlement include bad communication with borrowers, insufficient information provided to Bondi’s office in response to complaints, and homeowners being denied permanent loan modifications based on “further underwriting of the application.”
“I appreciate Wells Fargo promptly meeting with the monitoring committee regarding our continuing concerns and impacts on the borrowers struggling to maintain their homes,” Bondi wrote. “As the attorney general of one the states hardest hit by the foreclosure crisis, I am committed to ensuring that the servicing standard aspects of the National Mortgage Settlement are implemented in the most effective and permanent manner possible.”
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.
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.
This entry was posted
on Tuesday, June 11th, 2013 at 6:00 am and is filed under Florida economy, Foreclosures, Mortgage fraud, Mortgages, Real estate bust.
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