NY to sue BofA and Wells Fargo over mortgage rules New York state said it intends to sue Bank of America and Wells Fargo for allegedly repeatedly violating the terms of the $25bn national mortgage settlement. Eric Schneiderman, New York state attorney-general, said the state had documented 339 violations since October 2012 of new rules on how mortgages are serviced. Bank of America allegedly violated the servicing rules 129 times while Wells Fargo allegedly violated the terms 210 times. Mr Schneiderman said the banks failed to adhere to a timeline negotiated in the 2012 global settlement requiring banks to review loan modifications quickly. In February 2012, five leading banks, including BofA and Wells Fargo, agreed to pay $5.9bn in cash payments to people who lost their homes and an additional $19.1bn in loan restructurings aimed at helping struggling borrowers. As part of the settlement, the banks, including JPMorgan Chase, Citigroup and Ally Financial, agreed to respond in a timely fashion to homeowners seeking to modify their mortgages. Specifically, Mr Schneiderman alleged Bank of America and Wells Fargo did not acknowledge receipt of loan modification applications within three business days, alert homeowners to missing documents in the application, give borrowers enough time to correct deficiencies, and failed to act on loan modification requests within 30 days. As a result, he alleged, the delays increase the likelihood that the homeowners would lose their homes as they face additional fees and interest. The banks could not immediately be reached for comment. Mr Schneiderman was expected to announce the lawsuit later on Monday at a press conference joined by homeowners. Mr Schneiderman's lawsuit would be the first action alleging a bank violated the terms of the global pact. Banks are struggling to dig out of lawsuits related to fraudulent loan origination and securitisation practices and abusive tactics used against struggling homeowners. Banks have complained that multi-government agencies are investigating and suing them for a cross section of mortgage-related practices. State and federal agencies are also under pressure to demonstrate to the public that they are holding banks accountable for alleged wrongdoing. Mr Schneiderman resisted the mortgage settlement for months, criticising the administration for being too lenient. He did not sign on until after the Obama administration announced a multi-agency task force to investigate the sale of mortgage-backed securities and made him co-chair of the program.