Boston, MA 10/03/2013 (wallstreetpr) – The New York state sued Wells Fargo & Co. (NYSE:WFC) and the Bank of America. The central and state authorities charged the banks of not catering satisfactorily to the needs of the borrowers even after last year’s $25 billion deal. The state indicted at the Bank saying that they violated terms of the earlier deal. According to the former deal the Bank had agreed to better handle the services provided to the mortgage borrowers and that the neglect towards them would not be continued further.
The Bank has committed yet again to improve the mistreatment of the mortgage borrowers in a public statement on October 2. The bank has agreed to develop communications with borrowers in order to fill in any missing information. It would also intensify procedures for those who were over and again sought for information. Along with other reforms the bank has promised to undertake, a few corrections needed in the previous deal would also be taken immediate action on. For example, last year, the Bank had committed to provide a representative to the borrowers who would be assigned the duty of reviewing the loans for them and advice them accordingly. However, this was unfulfilled. In fact, it was found out that these representative were often incompetent and kept on changing. This time, however, the Bank would be more cautious in this context and provide an advocate to its customers.
After the New York attorney general outlined the problems of 97 different borrowers in the Federal court, Wells Fargo ascertained that are putting in positive efforts to improve customer satisfaction. Further, the monitor, Joe Smith declared four targets that would be mandatory for the Bank. One of them directs the Bank to monitor the performance of the representatives who serve the borrowers and another one keeps in check the accuracy of the proceedings in all the cases.