A.G. Schneiderman Letter To Wells Fargo: Lender's Policy To Suspend Mortgage Relief Applications Likely Violates National Mortgage Settlement In The Wake Of Hurricane Sandy

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NY A.G. Letter To Wells Fargo: Lender’s Policy To Suspend Mortgage Relief Apps Likely Violates National Mortgage Settlement In The Wake Of Hurricane Sandy

NY A.G. Letter To Wells Fargo: Lender’s Policy To Suspend Mortgage Relief Apps Likely Violates National Mortgage Settlement In The Wake Of Hurricane Sandy

November 16, 2012

John G. Stumpf
Chairman, President and CEO
Wells Fargo & Company
Wells Fargo Corporate Office Headquarters
420 Montgomery Street
San Francisco, CA 94163

Dear Mr. Stumpf:

I am writing on an urgent matter regarding the decision by Wells Fargo to suspend loss mitigation and loan modification requests from homeowners in the aftermath of Hurricane Sandy.

My office has been contacted by a number of legal service providers who represent homeowners in New York State seeking mortgage modifications from Wells Fargo. A law firm representing your institution has issued a letter which states that Wells Fargo will unilaterally suspend “all Home Preservation reviews and decisions” in the wake of the Hurricane Sandy. Further it states that Wells Fargo will not respond to requests for mortgage relief until you receive further information from FEMA.

I am certain that you are aware that under the National Mortgage Settlement, as well as under pre-existing NY State law, Wells Fargo is required to adhere to strict timelines when evaluating a homeowner’s request for a loan modification. Specifically, Wells Fargo is required to make a decision about a homeowner’s loan modification request within 30 days of receiving a completed application package. Wells Fargo’s decision to delay review will likely result in multiple violations of the National Mortgage Settlement.

Please be advised that Wells Fargo is not excused from any of its obligations under the National Mortgage Settlement or under New York law as a result of Hurricane Sandy, and that my office will aggressively pursue any loan servicing company that uses this tragic event as an excuse to violate loss mitigation decision timelines.

Further, my office is requesting immediate confirmation that Wells Fargo will rescind this policy, and that you and your legal representatives will take all necessary steps to communicate a retraction to homeowners who may have been improperly denied foreclosure mitigation assistance.

Countless families in New York have suffered tremendously because of this natural disaster. As we work to help those affected rebuild their lives, my office expects Wells Fargo’s full cooperation in ensuring that no additional and unwarranted damage is inflicted on those who were victims of this tragic event.

My office looks forward to your swift and immediate consideration regarding this urgent matter. 

Sincerely,

Eric T. Schneiderman

cc: David Moskowitz, Deputy General Counsel

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2 Responses to “NY A.G. Letter To Wells Fargo: Lender’s Policy To Suspend Mortgage Relief Apps Likely Violates National Mortgage Settlement In The Wake Of Hurricane Sandy”

  1. JIMI says:

    wells fargo are now as bad as bank of america and no one is more bad then bank of america banksters that still robo-sign today and steal homeowners homes by way of fraud with the help of uneducated judges
    in nj courts that either look the other way to the fraud and approve it or simply are dummeys that dont understand foreclosure laws

  2. Charles Reed says:

    In light of the recent FHA short fall, where I can prove without a doubt that Wells Fargo has laws in foreclosing upon any government insured loan they have ever originated and or purchase that they then placed into a Ginnie Mae pool and even the loan they did not purchase but are now faking that they are the owners of ex-Washington Mutual Bank loans, was foreclosed in an illegally procedure where they don’t have the legal right to call a loan due.

    Wells Fargo is fighting to the very end, however the writing on the wall that they are guilty of a mass fraud. Let take the Washington Mutual Bank debacle that Wells Fargo is involve with and it very clear what has happen with the unprotected borrowers and that is that Wells has greatly profited from false claims to the Federal Government and pocket this claim money as if they actual purchase the 1.3 million loan but in fact only has some phony mortgage servicing agreement with Washington Mutual who not the actual holder of the blank endorse Notes because it is a fact that Ginnie Mae is suppose to be in physical possession of the Notes in order to consummate the deal.

    However what was not consummated is that Ginnie Mae purchases the blank Notes, which they cannot purchase the loan because they are not a lender and are not authorized to purchase a home mortgage loan as it might result in losses to the taxpayers.

    Wells Fargo got to be one of the craziest companies on the planet and instead of heading off their problems they stall until the last moments causing even more pain and suffering of the victims to the same type crimes over and over again as with the settlement with the auction rate securities in 2009 with the state of CA and customers through the steering of blacks & Hispanic in the recent settlement this year. They claim the same thing with every incident and that is the personnel are not trained and will sale skin oil to they customers.

    They are caught once again with the Ginnie Mae MBS fraud that has taken place!

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