Massachusetts AG prepares litigation against mortgage servicers
A few days after California Attorney General Kamala Harris announced plans to explore robo-signing and foreclosure issues at mortgage servicers independent of other states, Massachusetts Attorney General Martha Coakley signaled her office is going in the same direction. "I have lost confidence that the banks will bring to the table an agreement that properly holds them accountable for wrongful foreclosures," Coakley said in a statement. "Because our office for some time has anticipated that result, we have begun preparing for litigation." Coakley was not specific about the lawsuits or her office's intended targets but said the litigation will relate to "creditor misconduct in connection with unlawful foreclosures." It appears Coakley plans to target servicers for allegedly failing to establish standing to foreclose and for filing false or misleading documents with registries in Massachusetts. "We will, as we have in the past, use our resources to hold the big banks accountable to fully protect homeowners and restore a healthy economy," she said. Last Friday, California's Harris sent a letter to Iowa Attorney General Tom Miller, saying she was backing out of talks with national mortgage servicers in favor of leading her own independent investigation. She said the her office's mortgage task force would continue focusing its investigations on all stages of the foreclosure process from securitization to lending and servicing. Write to Kerri Panchuk.