Massachusetts Attorney General Martha Coakley is suing five of the nation's biggest banks for deceptive foreclosure and mortgage modification practices, her office announced Thursday.
Coakley said in a statement Thursday. "Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law.
Our action today seeks real accountability for the banks illegal behavior and real relief for homeowners."
The lawsuit, filed against Bank of America, JPMorgan Chase, Wells Fargo, Citibank, Ally Financial and the Mortgage Electronic Registration System in Suffolk Superior Court, targets banks' using fraudulent paperwork in the foreclosure process, foreclosing without actually holding the mortgage, corrupting the local land recording system and failing to uphold promises of loan modifications.
Until now, Coakley had participated in settlement negotiations led by Iowa Attorney General Tom Miller and the Obama administration. The talks kicked off last fall when it came to light banks were using phony documents and forged signatures -- a process dubbed "robo-signing" -- to foreclose on thousands of borrowers.
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