Bloomberg News

BofA Says N.Y. Can’t Sue Over Foreclosure Deal Violations (1)

May 10, 2013

Bank of America Corp. (BAC:US) said New York Attorney General Eric Schneiderman has no right to take enforcement action against the bank over claims that it violated terms of a nationwide foreclosure settlement.

The settlement permits enforcement actions when a bank fails to comply with defined metrics and an opportunity to “cure” the violation has been provided, the bank said in a May 7 letter to Schneiderman. The bank says it has complied with “every applicable metric.”

“Your office has no right under the express terms of the national mortgage settlement to commence an enforcement action against Bank of America, and we respectfully request that your notice of intent to do so be publicly withdrawn,” attorneys for the bank said.

The letter came a day after Schneiderman announced that Bank of America and Wells Fargo & Co. (WFC:US) violated terms of last year’s settlement with five banks that resolved claims over their foreclosure practices. The deal was negotiated with 49 states and the U.S.

Schneiderman said he intended to sue the two lenders, claiming they “flagrantly violated” their obligations for processing mortgage modification applications from homeowners.

Damien LaVera, a spokesman for Schneiderman, didn’t respond to a phone message or e-mail seeking comment on the letter. Lawrence Grayson, a spokesman for Charlotte, North Carolina-based Bank of America, declined to comment.

To contact the reporter on this story: David McLaughlin in New York at

To contact the editor responsible for this story: John Pickering at

Cash Is for Losers

Companies Mentioned

  • BAC
    (Bank of America Corp)
    • $17.1 USD
    • -0.08
    • -0.47%
  • WFC
    (Wells Fargo & Co)
    • $53.88 USD
    • -0.22
    • -0.41%
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