Attorney General of Massachusetts has “Lost Confidence” in the Banks
Photo by AMagill
Martha Coakley, the Attorney General of Massachusetts, said she is planning to bring lawsuits against some of the nation’s major banks. She apparently has “lost confidence” in their reaching a reasonable agreement in resolving various foreclosure related disputes.
The attorney generals from all fifty states decided last fall to investigate the dubitable foreclosure practices of the banks after the surfacing of the robo-signing scandal. Doubts have been raised about whether the banks’ seizure of homes was justifiable or not.
Meanwhile, financial institutions have been trying to reach a settlement with the investigating team; involved are the five mega mortgage servicers – Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial.
Fifty eight year old Coakley said, “I have lost confidence that the banks will bring to the table an agreement that properly holds them accountable for wrongful foreclosures. Because our office for some time has anticipated that result, we have begun preparing for litigation”. This statement was recently released by the press.
The Attorney General of California, Kamala Harris, recently rejected the settlement proposal and withdrew from the investigating team. She said she would investigate on her own in a letter she sent to the Justice Department as well as to the head of the investigating team-Tom Miller, the Attorney General of Iowa.
Eric Schneiderman, the Attorney General of New York; Beau Biden the Attorney General of Delaware and Catherine Cortez Masto, the Attorney General of Nevada, are also conducting their own investigations regarding faulty foreclosures and other lapses in mortgage loans. Meanwhile, settlement talks with the banks are still ongoing.
Miller stated recently that the settlement being sketched will make the banks accountable “in ways that are unprecedented” as well as help troubled house owners across America. Recently, further talks regarding this matter were held in Washington.
In an e-mail Miller said, “While attorneys general are free to criticize an agreement that does not exist, we expect that they’ll soon see the tangible results of our yearlong efforts to address improper servicing and foreclosure practices, and provide relief to homeowners”.
Coakley further informed that her office is proceeding aggressively with their plans to bring lawsuits against the banks. In their report, charges will be included that mention how banks failed to establish their authority in kicking off foreclosures apart from other lapses, like posting forged or misleading documents.
Coakley has been probing the MERS issue. However, she did not mention when the suing would begin or which banks would be targeted.
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