For Immediate Release - October 13, 2010

Massachusetts Attorney General Martha Coakley Joins Multistate Mortgage Foreclosure Group

BOSTON - Today, Massachusetts Attorney General Martha Coakley joined with 49 other Attorneys General and state banking and mortgage regulators from 30 states to form a bi-partisan multistate group to explore whether or not individual mortgage servicers have improperly submitted affidavits or other documents in support of foreclosures without first verifying their accuracy.

"We have serious concerns as to the veracity and accuracy of the affidavits and other documents used in foreclosures by certain lenders, and whether homeowners received the information they are entitled to under the law. Through this coalition of states, we will ensure that lenders provide true and accurate information in accordance with the law before proceeding with foreclosure." said Attorney General Martha Coakley.

The multistate group will contact a comprehensive list of individual mortgage servicers. The group's initial objectives include:

  • Put an immediate stop to improper mortgage foreclosure practices.
  • Review past and present practices by mortgage servicers subject to the inquiry.
  • Evaluate potential remedies for past practices and to deter future improper practices.
  • Establish a mechanism for more effective independent monitoring of future mortgage foreclosure practices.

Last week, Attorney General Martha Coakley sent letters to four of the nation's largest lenders GMAC/Ally, J.P. Morgan Chase, Wells Fargo and Bank of America calling on them to suspend foreclosures, foreclosure evictions and sales of foreclosed properties following revelations that major lenders were failing to properly review foreclosure documentation. The Attorney General's Office contacted those major lenders because information became public showing that they routinely submitted affidavits related to the foreclosure process containing information that was not verified or known by the lender's agent that signed the affidavit.

Though Massachusetts is a non-judicial foreclosure state, homeowners still have protections under state foreclosure law, enacted by the Legislature and announced by both Governor Patrick and Attorney General Coakley in May 2008. Among the law's requirements was that creditors must file a signed affidavit certifying that borrowers received not only proper notice of foreclosure but were also provided disclosures and information regarding their legal rights prior to foreclosure.

To read the joint statement of the multi-state group, please click here. The following is a list of participating state Attorneys General and state banking and mortgage regulators:

Participating Attorneys General

Alaska

Alabama

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii Department of the Attorney General / Hawaii Office of Consumer Protection

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Participating State Bank and Mortgage Regulators

Arizona Department of Financial Institutions

Arkansas Securities Department

Connecticut Department of Banking

D.C. Department of Insurance Securities and Banking

Florida Office of Financial Regulation

Idaho Department of Finance

Illinois Secretary of Financial and Professional Regulation

Indiana Department of Financial Institutions

Iowa Division of Banking

Kentucky Department of Financial Institutions

Louisiana Office of Financial Institutions

Maine Bureau of Consumer Credit Protection

Maine Bureau of Financial Institutions

Maryland Office of the Commissioner of Financial Regulation

Division of Banks, Commonwealth of Massachusetts

Michigan Office of Financial & Insurance Regulation

Minnesota Department of Commerce

Mississippi Department of Banking and Consumer Finance

Montana Division of Banking and Financial Institutions

Nebraska Department of Banking and Finance

Nevada Financial Institutions Division and Mortgage Lending Division

New Hampshire Banking Department

New Jersey Department of Banking & Insurance - Office of Consumer Finance

New York State Banking Department

North Carolina Commissioner of Banks

North Dakota Department of Financial Institutions

Ohio Division of Financial Institutions

Oregon Department of Consumer and Business Services - Division of Finance and Corporate Securities

Pennsylvania Department of Banking

Rhode Island Department of Business Regulation - Division of Banking

South Carolina Department of Consumer Affairs

Tennessee Department of Financial Institutions

Texas Department of Banking

Texas Finance Commission and Consumer Credit Commissioner

Vermont Department of Banking, Insurance, Securities and Health Care Administration

Washington State Department of Financial Institutions

West Virginia Division of Banking

Wisconsin Department of Banking

Wyoming Division of Banking

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