Attorney General Martha CoakleyAttorney General Martha Coakley sent letters to 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 last week’s news that major lenders were failing to properly review foreclosure documentation.

"We are concerned that major lenders gave scant attention to compliance with state law governing foreclosures, as shown by their cavalier attitude concerning affidavits filed with courts around the country," said Coakley. "We are determined to find out whether and how that lack of care and lack of compliance has impacted foreclosures in Massachusetts where, even though a judge does not review foreclosures, creditors are obligated to show compliance with our state law, including provision of a detailed notice to the borrower."

In the letters, creditors were called on to immediately cease foreclosing on homeowners in Massachusetts until they can demonstrate to Coakley’s office that foreclosure affidavits used since May 2008 were accurate and complete and provided borrowers the protections they are entitled to under the law, according to a statement. Companies must also identify how they will rectify those instances where borrowers were improperly foreclosed out of their homes and to produce documents showing their affidavit processes.

Coakley Calls on Creditors To Cease Foreclosures

by Banker & Tradesman time to read: 1 min
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