Bank of America has moved at a faster clip than Wells Fargo, JPMorgan Chase and Citigroup in meeting obligations to help borrowers facing possible foreclosure under last year’s $25 billion National Mortgage Settlement. The latest audits credits Bank of America with 97 percent of its required $7.6 billion in consumer relief as of the end of last year.
The new BofA account would continue to prevent overdrafts at the point of sale, but it would also prevent them from occurring via other transactions, including ATM withdrawals, automatic bill payments and checks.
New York’s attorney general said he is suing Wells Fargo to get the nation’s largest mortgage lender to comply with new servicing standards under last year’s five-bank settlement spurred by foreclosure-related abuses. Meanwhile, Attorney General Eric T. Schneiderman said today that his office has reached an agreement to suspend a similar enforcement action against Bank of America.
The accusations from 26 homeowner suits “may well be meritorious,” the Massachusetts judge, Rya Zobel, wrote in her decision this week. However, the judge wrote there are too many “individual factual questions” in the case to justify class-action status.
According to the data provided, 643,726 borrowers have seen some type of mortgage relief or other assistance, such as expedited short sales or limited mortgage principal forgiveness. Many are in first-lien trial modifications.
Small business loan approvals at big banks — institutions with $10 billion or more in assets — jumped to an all-time index high of 17.4 percent in July 2013, from 16.9 percent in June. Approval rates have jumped 50 percent from a year ago.
Justice officials said Bank of America lied to investors about the “relative riskiness” of mortgage loans that backed securities, intentionally not performing proper due diligence and using a disproportionate amount of risky loans originated through third-party mortgage brokers.
The national interest rate average on new credit card offers remained at 14.96 percent this week, despite a 1-point shift upward on the Chase Slate card, according to CreditCards.com.
This may be a good time to take advantage of those “0% balance transfer” deals because their overall value has peaked and will diminish before improving again.
The nation’s second-largest bank is fighting headline-grabbing lawsuits alleging misdeeds in helping homeowners avoid foreclosure, but even litigation costs haven’t kept Bank of America from reaping a big profit in the second quarter.