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