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.
