Bank of America to New York: You Can't Sue Us Over Mortgage Settlement

Bank of America to New York: You Can't Sue Over Mortgage SettlementBank of America not only denied any violations of the National Mortgage Settlement in a letter to New York’s attorney general, the bank’s lawyers said the state can’t file a lawsuit.
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) reached more than a year ago between state authorities and five of the top lenders.
Schneiderman announced May 6 that his office will file lawsuits against the two banks over 210 separate violations involving Wells Fargo and 129 involving Bank of America.
“Bank of America was surprised and disappointed to learn for the first time through the May 6 letter and attendant press coverage about your belief that Bank of America is engaging in ‘a persistent pattern of non-compliance under the National Mortgage Settlement’ and ‘flagrant violations’ of the loan modification timeline requirements in the National Mortgage Settlement Servicing Standards,” wrote the law firm of Wachtell, Lipton, Rosen & Katz, which sent a three-page response on behalf of the bank to Schneiderman May 7.
The bank’s lawyers assert that the New York attorney general does not have the jurisdiction to sue and has failed to meet the requirements to take such an action.
“As the National Mortgage Settlement makes clear, an enforcement action may be brought only ‘to enforce the obligations of servicer and to seek remedies for an uncured potential violation for which servicer’s time to cure has expired,’ ” the bank said in the law firm’s letter.
The bank goes on to say it has not “committed any potential violations with respect to any of the servicing standards.”
Bank of America said only a federal court judge within the District of Columbia can take action against the bank, and even then, only after the bank has been given the opportunity to fix any determined violations of servicing standards.
“In addition, the National Mortgage Settlement is quite clear that only a failure to comply with the defined metrics can give rise to any suit (whether by the monitoring committee or a signatory state) which is exclusively within the jurisdiction of the federal court in the District of Columbia that approved the settlement, and even then only after an opportunity to cure has been provided,” Bank of America said.
Read the letter from Bank of America’s lawyers.

3 thoughts on “Bank of America to New York: You Can't Sue Us Over Mortgage Settlement

  • May 15, 2013 at 9:05 am
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    Justice

  • May 15, 2013 at 9:26 am
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    HBO FILM: Too Big To Fail: Opening The Vault On The Financial Crisis
    The new HBO original film, “Too Big To Fail”, premieres on Monday, May 23 only on HBO.
    http://www.youtube.com/watch?v=wVV6dzDO … e=youtu.be

  • May 15, 2013 at 1:55 pm
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    BoA is correct. banks are many steps ahead of government. glad to see the government look stupid for once.

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