NEW YORK—The Massachusetts attorney general’s office sued five major U.S. banks on Thursday for their foreclosure practices, including “unlawful and deceptive conduct.”
Bank of America Corp., Wells Fargo Co., JPMorgan Chase & Co., Citigroup Inc., and Ally Financial Inc. (formerly GMAC LLC) were sued by Mass. Attorney General Martha Coakley. Charges were unlawful foreclosure procedures, including foreclosures, “robo-signing,” and other documentation issues noted by the AG’s office. Millions of families were foreclosed upon following the recent financial crisis.
The charges come at an interesting time for banks, which are mired in a yearlong tussle with state and federal officials over foreclosure practices. But this week, Coakley said that she was no longer confident in an equitable settlement between the banks and a multistate group of attorneys general.
“The AG’s lawsuit seeks accountability for the banks’ unlawful and deceptive conduct in the foreclosure process, including unlawful foreclosures, false documentation and robo-signing, MERS, and deceptive practices related to loan modifications,'' the AG office said in a statement.
The suit also names as defendant a unit of Merscorp Inc., a company that has a mortgage registry used by banks. The suit was filed in Suffolk Superior Court.
