Massachusetts has sued the nation’s five largest mortgage servicers for allegedly pursuing illegal foreclosures and misleading troubled borrowers hoping to get loan modifications in that state.
In suing, Massachusetts Atty. Gen. Martha Coakley increases pressure on the banks, which are negotiating with a coalition of attorneys general in an effort to reach a settlement over the companies' foreclosure and mortgage servicing practices. The suitcontends the banks — Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co.,Citigroup Inc. and Ally Financial Inc., “charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law.”
In a statement, Coakley said the latest legal action was necessary because “the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law.”