The attorney general claimed that the banks were not fulfilling their promises made last year, in which they agreed to provide relief to homeowners and oblige servicing standards for foreclosure misconduct.
Five banking firms including JPMorgan Chase, Citigroup and Ally Financial, BofA and Wells Fargo inked a settlement and consented to reimburse $5.9bn in cash to affected homeowners who lost their homes and $19.1bn in loan restructure to provide some relief to struggling borrowers.
He criticized BofA and Wells Fargo for their lackluster approach, and for not acknowledging receipt of loan modification applications within three business days, nor informing applicants about missing documents in the application.
Both banks also did not provide sufficient time to borrowers, so that they can improve the deficiencies, and also could not take necessary steps on loan modification applications within 30 days of stipulated timeframe.
Since October 2012, his office has prepared a list of 339 violations of norms, in which BofA breached the servicing rules 129 times, while Wells Fargo violated the regulations 210 times, Schneiderman said.
"Wells Fargo and Bank of America have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure," the attorney general said in a statement.
Neither BofA nor Wells Fargo commented on the issue.
