Published On: Tue, Feb 3rd, 2015

NY AG Schneiderman Fails to Prove Wells Fargo Causes Borrowers Kafkaesque Angst

Wells Fargo + Schneiderman

Eric Schneiderman is the Attorney General that never sleeps; it seems every day, he is involved in yet another cause, such as removing phoney herbal supplements from Walgreens, to improve the lives of New Yorkers, but perhaps when it comes to Wells Fargo, Schneiderman should take a rest. He claims that Wells Fargo violated a $25 million agreement made with it and four other banks in 2012 over reforms to mortgage lending practices, but a federal judge has thrown the claim out, according to Reuters.

U.S. District Judge Rosemary Collyer said Schneiderman’s claims were “so insubstantial” that there doesn’t seem to be any violation of the agreement. She felt that Schneiderman was splitting hairs in the case of Wells Fargo and declared, according to Housingwire, the settlement “does not require absolute perfection in loan servicing.” There were only 97 cases of non-compliance out of 450, 000 loans in New York state. Judge Collyer said Schneiderman’s accusations against the bank were exaggerated, as he claimed Wells “repeatedly” violated the terms and brought those holding mortgages into an angst of the highest literary caliber, with “Kafkaesque delays and obstructions in the loan modification process.”

Her conclusion was the most likely result of validating the Attorney General’s complaints would be a slew of frivolous lawsuits. Judge Collyer declared, “The (Attorney General’s) Motion to Enforce Consent Judgement will be denied for failure to allege a breach of contact.”

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