Thursday, February 9, 2012

Coakley "Carves Out" Settlement Niche For Mass. Suits Against Banks

BrocktonPost BROCKTON--State Attorney General Martha Coakley Office and Attorneys General from across the country have entered into a $25 billion nationwide state-federal settlement over unlawful foreclosures, that is expected to bring an estimated $318 million dollars in assistance to Massachusetts borrowers.
The agreement, according to a prepared statement from Coakley's office, will settle many claims made as part of Coakley’s lawsuit against the five banks filed on December 1, 2011.
In Massachusetts, this agreement provides for immediate relief and a “carve out” to the agreement to allow her office to continue to pursue further relief in the courts against the banks over two Massachusetts-specific issues.
Those claims include initiating foreclosures without holding the actual mortgages--so-called “Ibanez” violations--and allegedly corrupting the land recording system through the use of the Mortgage Electronic Registration System (MERS).
The agreement will settle all other claims made as part of Coakley’s lawsuit against the five banks filed on December 1, 2011.
Attorneys General from 49 states have agreed to join the settlement announced today, Feb. 9 in Washington, D.C. The banks will provide an immediate infusion of millions of dollars in relief for struggling homeowners.
It also allows the Attorney General’s Office to continue to pursue claims against the banks for initiating illegal foreclosures in the state and corrupting the land court system.
Through this national state-federal agreement, five major lenders are expected to provide approximately $14.6 million in cash payments to Massachusetts borrowers, $257 million worth of mortgage relief, and a direct payment of more than $46.5 million to the Commonwealth that will be used to assist homeowners.
The agreement settles allegations of widespread use of fraudulent documents by Bank of America, Wells Fargo, JP Morgan Chase, Citi, and Ally Financial. Massachusetts estimated total share of the settlement is $317,915,272.
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