Mass. AG Prepares For Servicer Litigation

Mass. AG Prepares For Servicer Litigation The multistate coalition of attorneys general has grown more fragmented, with Massachusetts' Martha Coakley announcing this week that she has ‘lost confidence’ that the banks will agree to a fair settlement that holds them accountable for wrongful foreclosures.

‘Because our office for some time has anticipated that result, we have begun preparing for litigation,’ Coakley said in a statement. ‘Our office is aggressively proceeding with efforts to file lawsuits regarding creditor misconduct in connection with unlawful foreclosures, including the failure to establish the right to start a foreclosure as well as filing false or misleading documents with registries in the commonwealth.’

Coakley's statement comes less than a week after California's attorney general, Kamala Harris, voluntarily exited negotiations, citing her belief that any likely settlement would require state officials to broadly release non-servicing-related mortgage claims against banks.

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