Massachusetts Attorney Sues the Five Biggest Mortgage Servicers?


So now it appears that MA. is pressing charges on servicers. Wow, why don't we just tell the banks never to lend anyone money ever again. Is the TPS form (reference to "Office Space" movie) more important than the fact that there was a loan that hadn't been paid for several years with the home as collateral?

WSJ - Top 5 Mortgage Servicers Face Charges
Massachusetts Attorney General Martha Coakley sued the five biggest mortgage servicers Thursday, in the first government lawsuit targeting all five for alleged improper foreclosure practices including so-called robo-signing.  The 57-page civil suit, filed in Superior Court in Suffolk County, alleges that the banks' foreclosure practices were unlawful and deceptive. The suit, which doesn't specify damages, contends the banks — Bank of America Corp., J.P. Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. — "charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law."

The banks have in the past acknowledged problems with their foreclosure processes, but said they haven't found anyone who was wrongly foreclosed on. Several said Thursday that they were disappointed by the suit.  The action by Massachusetts comes as the five large banks and state and federal officials try to hammer out what some hope could be a $25 billion settlement related to the handling of troubled mortgage loans. The suit could be yet another blow to the long-running talks, by highlighting Massachusett's objections to terms under discussion.  The Massachusetts lawsuit is likely to be closely scrutinized by other states looking at what action they might take if a deal collapses. Other states that have raised objections include California, Delaware and New York.  Still, Iowa Attorney General Tom Miller, who is spearheading the multi-state effort, said in a statement that he is "optimistic that we'll settle on terms that will be in the interests of Massachusetts."

When society stops looking for technicalities and starts looking at the big picture and assigning value to self-reliance and personal responsibility, then we'll make real progress. Read another follow up on the story here at the Wall Street Journal.
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