New York Attorney General Eric Schneiderman said that Bank of America Corp. and Wells Fargo & Co. violated terms of a nationwide settlement reached last year over banks’ residential mortgage foreclosure practices, Bloomberg News reported yesterday. The two banks have failed to comply with standards established for processing homeowners’ loan modification applications, Schneiderman said yesterday, and that he plans to sue the banks unless a committee set up to monitor the settlement’s terms takes action. Schneiderman said that delays by the banks in processing mortgage loan modifications have caused New Yorkers to incur fees and fall further behind in payments, putting them at even greater risk of losing their homes.
