Addressing the Foreclosure Crisis

When AG Coakley took office in 2007, the Commonwealth was quickly confronted with addressing the economic crisis that gripped our country.

Her office moved aggressively and became a national leader in the efforts to hold Wall Street accountable and protect homeowners, bringing first-of-their-kind actions against investment giants such as Morgan Stanley and Goldman Sachs. Overall, her office has secured more than $600 million in relief for investors and borrowers, recovered nearly $60 million in taxpayer funds, and helped keep more than 25,400 people in their homes.

When issues of servicing fraud and robo-signing arose in 2010, Coakley worked to protect Massachusetts homeowners by calling on Bank of America and other banks to cease foreclosure proceedings until it could be further investigated. She also has launched investigations regarding MERS and other issues to protect against faulty foreclosures.

Her office has also worked on a local level to address the rise in abandoned properties that negatively impact public safety and neighborhood property values. In 2009, Coakley expanded her office’s Abandoned Housing Initiative to utilize the receivership statute to help rehabilitate those abandoned properties. The program now is actively working to rehabilitate more than 200 properties across the Commonwealth.

Coakley also advocated for national reforms including the creation of the federal Consumer Financial Protection Bureau, which was ultimately established in 2010.

Overview of Attorney General Martha Coakley's Initiative to Combat the Subprime Lending Crisis 

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