Newscast Media BOSTON — Five national banks have been sued in connection with their roles in allegedly pursuing illegal foreclosures on properties in Massachusetts as well as deceptive loan servicing, Attorney General Martha Coakley announced today. The lawsuit was filed today in Suffolk Superior Court against Bank of America, Wells Fargo, JP Morgan Chase, Citi, and GMAC. It also names Mortgage Electronic Registration System, Inc. (“MERS”) and its parent, MERSCORP Inc., as defendants.
“The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis,” said AG Coakley. “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.”
In the complaint, the Attorney General alleges these five entities engaged in unfair and deceptive trade practices in violation of Massachusetts’ law by:
* Pervasive use of fraudulent documentation in the foreclosure process, including
* Foreclosing without holding the actual mortgage (“Ibanez” violations);
* Corrupting Massachusetts’ land recording system through the use of MERS;
* Failing to uphold loan modification promises to Massachusetts homeowners.
USE OF FALSE DOCUMENTS TO EXPEDITE FORECLOSURES “ROBO-SIGNING”:
According to the complaint, the banks used false documentation in the foreclosure process, including so-called “robo-signing”, whereby bank personnel signed affidavits that were untrue, or not based on the signor’s actual knowledge.
FORECLOSING WITHOUT LEGAL AUTHORITY “IBANEZ VIOLATIONS”:
Second, these five entities participated in unlawful foreclosures when they commenced foreclosures on mortgages where they were not the holders of those mortgages. The Supreme Judicial Court (SJC), in Commonwealth v Ibanez, recently upheld Massachusetts law and stated that “only the present holder of a mortgage is authorized to foreclose on the mortgaged property.” Banks “lack standing” to foreclose if they do not own the debt obligation.
UNDERMINING PUBLIC RECORDS “MERS”:
Third, the complaint alleges that these banks have undermined our public land record system through the use of MERS, a private electronic registry system. According to the complaint, the creation and use of MERS was adopted by these defendants primarily to avoid land registration and recording requirements, including payment of recording and registration fees, and to facilitate sales of mortgage loans.
MISREPRESENTING LOAN MODIFICATION PROGRAMS:
Finally, the complaint alleges the banks deceived and misrepresented to borrowers the process, requirements, and availability of loan modifications. The complaint alleges these banks misled borrowers about their eligibility for this program and the amount of relief available, failed to achieve a significant level of modifications, and often strung along borrowers for months in trial modifications that were ultimately rejected.
AG Coakley’s office has been a national leader in holding banks and investment giants accountable for their roles in the economic crisis. AG Coakley has obtained recoveries from Morgan Stanley, Goldman Sachs, Royal Bank of Scotland, Countrywide, Fremont Investment & Loan, Option One, and others on behalf of Massachusetts homeowners. As a result of these actions, her office has recovered more than $600 million in relief for investors and borrowers, helped keep more than 25,400 people in their homes, and returned nearly $60 million in taxpayer funds back to the Commonwealth.
Unfortunately stories like these are killed by the mainstream media, that are forbidden to report them, since they are owned by the large corporations that finance them. The entire complaint can be read here.
Categories: News Tags: attorney general sues bank of america, Bank of America class action lawsuit, citi bank sued, foreclosure, foreclosure fraud, foreclosure theft, lack of standing, mortgage fraud, robo-signing, wells fargo sued
Newscast Media WASHINGTON, D.C. – Congresswoman Tammy Baldwin (D-WI) led colleagues in standing up for millions of homeowners across the nation who were victims of fraudulent practices by the nation’s biggest banks. In a letter to U.S. Attorney General Eric Holder concerning the ongoing settlement talks between state attorneys general, federal regulators, and large mortgage servicers, Baldwin, joined by 24 colleagues, opposed any settlement to grant mortgage servicers blanket immunity for wrongdoing related to illegal mortgage and foreclosure practices.
“It is simply wrong that Wall Street was allowed to recklessly endanger our economy and has had no required recompense while millions of Americans have lost homes and savings and our national economy was brought to virtual collapse,” said Congresswoman Baldwin. “Those families who were victimized by unscrupulous and illegal activities by banks and mortgage companies must be allowed to sue to recover their losses,” she said.
Due to wrongdoing on the part of mortgage lenders, millions of homeowners now find that the mortgage on their homes is greater than the assessed value of those homes. Consequently, many of these homeowners now find themselves in greater debt, bankruptcy, or foreclosure. In her letter to Holder, Baldwin wrote, “We believe that the American public deserves a full investigation into these claims and that those responsible are held to account for their actions.”
Baldwin is angered by the stark contrast between the status of Main Street Americans and Wall Street executives. “I’ve spoken with homeowners throughout Wisconsin who are financially and emotionally devastated by the collapse of the housing market. Yet, no Wall Street executives have faced prosecution for their part in intentionally causing that collapse and that suffering. The message this sends is that average Americans play by one set of rules and everyone on Wall Street plays by another; and Wall Street always wins,” she said.
“It’s outrageous that while banks and other financial institutions were rescued on the premise that they were ‘too big to fail,’ they are now being rewarded as being ‘too big to prosecute,’” Baldwin said.
Baldwin has escalated her opinions in the letter and has now introduced a resolution in Congress to make sure banks do not get immunity when a deal is struck to resolve the fraudclosure that was committed against homeowners.
Baldwin said, “If blanket immunity is granted to mortgage servicers their appalling behavior goes unpunished and they will continue to behave as if they are above the law…The American principle of equal justice under the law must apply to all, not just some.”
Related article:Bank of America Class Action Foreclosure Lawsuit by Homeowners