BofA Questions Eric Schneidermanâ€™s Claims
As per the revelations of a new report, New York Attorney General Eric Schneiderman has been fired back by Bank of America Corp (BAC. N).
It is after the attorney general threatened to take legal action against the bank. He claimed that a $25 billion settlement's terms were violated. The same was designed to bring mortgage servicing abuses to an end.
On Monday, it was announced by Schneiderman that he had planned of suing the bank as well as Wells Fargo & Co. They had breached the terms of National Mortgage Settlement, brokered last year between 49 attorneys general and five major banks.
However, the performance of Citigroup Inc (C. N), Ally Financial Inc and JPMorgan Chase & Co (JPM. N) was not disclosed by him.
Lawyers for Bank of America wrote a letter to Schneiderman, saying that they were amazed and disappointed that he alleged the bank of engaging in the timeline's flagrant violations so as to process mortgage modifications.
It was said by lawyers that the bank could not be sued by Schneiderman until and unless it had the chance to cure the alleged breaches.
"Bank of America has not committed any potential violations ... let alone failed to cure those potential violations", read the letter written by Wachtell, Lipton Rosen & Katz's attorneys Meyer Koplow and Theodore Mirvis.