Boston, MA, United States (AHN) – The Bay State has taken the lead in an ambitious lawsuit against five major banks over the foreclosure crisis that has struck the American economy. Massachusetts Attorney Gen. Martha Coakley has filed charges against Bank of America, Citi, GMAC, JPMorgan Chase, and Wells Fargo in Suffolk Superior Court. The suit also names Mortgage Electronic Registration System (MERS) as a defendant.
“The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis,” Coakley said. “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.”
Among the complaints, Massachusetts charges “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… By October 2010, the banks’ flagrant disregard of affidavit and notary process requirements became widely known.”
The suit also alleges “Ibanez violations” stemming from foreclosures without legal authority, charges of undermining public records, and misrepresenting loan modification programs.