NY Wells Fargo Lawsuit Is Welcome News for Homeowners

NY Wells Fargo Lawsuit Is Welcome News for Homeowners

FOR IMMEDIATE RELEASE Wednesday, October 2, 2013

CONTACT: Nick Sifuentes, nick@berlinrosen.com310-866-1692

NY Wells Fargo Lawsuit Is Welcome News for Homeowners

***Advocates and Homeowners in Foreclosure Available for Comment***

The following statement is from Brian Kettenring, Executive Director of the Campaign for a Fair Settlement, in response to the news that New York Attorney General Eric Schneiderman is preparing a lawsuit against Wells Fargo for violating the terms of the National Mortgage Settlement.


“The New York Attorney General’s action is welcome news for homeowners who at best get the run-around and at worst lose their homes because Wells Fargo refuses to act in good faith. It is shameful that Wall Street banks continue to abuse homeowners in ways they claimed they would stop years ago. The bank’s behavior is especially disgraceful because the National Mortgage Settlement in many ways let Wells Fargo off the hook for massive and systemic fraud. Wells Fargo was particularly aggressive in targeting communities for predatory lending before the crash and has been singled out by community groups as one of the worst perpetrators of unnecessary foreclosures.


“Coupled with the JP Morgan Chase federal settlement talks, there is encouraging movement toward holding Wall Street banks accountable. Five years after the financial crisis, Wells Fargo, JP Morgan Chase and other banks still have not paid back the American people for the crimes they committed. There has been little real relief for the millions of Americans who lost their homes and the millions more who continue to face the threat of foreclosure. And still, five years later, not a single senior executive at a Wall Street bank has gone to jail for their crimes.”


To many in California, the Wells Fargo suit is welcome relief. A recent report by the Alliance of Californians for Community Empowerment, “California in Crisis,” indicated that as of March 2013, there were 11,616 homes in Wells Fargo's foreclosure pipeline; should foreclosures proceed on each, the report found that the state will lose $3.3 billion in wealth: each home will lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion; homes in the surrounding neighborhood will lose value as well, for an additional loss of about $2.2 billion; and government tax revenues will be cut by $20 million, as a result of the depreciation.


The Campaign for a Fair Settlement is the leading watchdog group monitoring the $25b National Mortgage Settlement and pressing for new state and federal efforts to help homeowners. The Home Defenders League is a national organization of underwater and homeowners and community organizations fighting for a just resolution to the foreclosure crisis.



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