State attorneys general are waiting on specific guidance from the Internal Revenue Service on the tax consequences for nearly 1 million NMS check recipients.
Bank of America allegedly denied homeowners mortgage modificatons and lied to them as part of a strategy to steer them into foreclosure, according to tactics outlined by former bank employees whose accounts are part of a lawsuit.
Florida’s Attorney General said complaints against Bank of America are revealing patterns of “systematic” rule violations under the National Mortgage Settlement, including lengthy delays in providing loan modifications and sending state officials “litigation letters.”
Florida has funneled millions of dollars from the settlement to legal aid groups across the state to help homeowners reduce their loan payments, conduct short sales and defend their foreclosure.
Rust Consulting will begin mailing checks June 10 in the amount of about $1,480 each to claimants in the National Mortgage Settlement, said an updated statement Tuesday from administrators.
Etienne Syldor, an Orlando man, has often worked multiple jobs to keep his mortgage current, even overpaying and making payments early in a mortgage modification trial with Wells Fargo. The result: the bank stopped accepting his mortgage payments and started foreclosure proceedings.
Monitor Joseph A. Smith, Jr. said his office needs more time to determine if the five big lenders that are party to last year’s landmark agreement are adhering to more than 300 new mortgage servicing standards. He said he will likely issue a report next month and won’t be rushed into a quick assessment.
The $25 billion National Mortgage Settlement was reached early last year between the five big banks and 49 state attorneys general, but it seems that the lone holdout — Oklahoma — is drawing bigger payouts for its victims of the same foreclosure abuses.
The nation’s second largest bank said it was “surprised and disappointed” to learn of New York Attorney General Eric Schneiderman’s intent to sue Bank of America (and Wells Fargo) for violating servicing standards under the $25 billion National Mortgage Settlement (NMS).
Elizabeth Warren, the freshman Senator from Massachusetts, made “too big for trial” a virtual slogan for her crusade to get regulators to explain why no big bank has been prosecuted for wrongdoing in the run-up to the crippling financial crisis. She is at it again.