'Massachusetts sues big lenders over foreclosure practices'

Discussion in 'Wall St. News' started by Wallace, Dec 1, 2011.

  1. by Alejandro Lazo, Los Angeles Times Dec 2/11
    "BofA, Wells Fargo, JPMorgan Chase, Citigroup and GMAC are accused of fraud.
    The lawsuit could serve as a road map for other states, including California.
    The nation's five biggest mortgage lenders are facing a major legal challenge in
    Massachusetts to seek relief for homeowners foreclosed on during the housing
    crisis, a case that could have reverberations for consumers across the nation.
    In the first such lawsuit filed by a state, Massachusetts Atty. Gen. Martha
    Coakley claims that Bank of America Corp., Wells Fargo & Co., JPMorgan
    Chase & Co., Citigroup Inc. and GMAC Mortgage used fraudulent documentation
    in the foreclosure processes, took back homes without showing they owned the
    actual mortgages, and failed to uphold loan modification promises to borrowers in
    the state. Also named is the electronic mortgage registry known as MERS, which
    was set up by banks to track ownership changes. . . .
    Coakley said at a news conference Thursday that she was no longer part of
    negotiations with the coalition of attorneys general. . . .
    New York, Delaware, Nevada, Massachusetts, Kentucky and Minnesota have all
    signaled that they were unhappy with the direction of the talks with the banks.
    Those states were concerned that the banks were being let off too easily. . . .
    California Atty. Gen. Kamala Harris formally walked away from the negotiations
    after meeting with bank representatives in Washington, concluding that what they
    were offering was not good enough for residents of the state." - more: