MASSPIRG Applauds AG Coakley’s Announcement about Big Bank Foreclosure Suit

Statement of Lizzi Weyant, MASSPIRG Staff Attorney

MASSPIRG

“The reckless and predatory Wall Street practices collapsed our economy in 2008, causing trillions of dollars in lost savings, jobs and home ownership.  Today, Massachusetts Attorney General Martha Coakley filed suit against five national banks in connection with their roles in pursuing illegal foreclosures on properties in Massachusetts.

We applaud the Attorney General’s initiative and believe that it will go a long way towards providing critical relief for Massachusetts homeowners.

The lawsuit was filed against Bank of America, Wells Fargo, JP Morgan Chase, Citi and Ally Financial, along with Mortgage Electronic Registration System, Inc (MERS) and its parent, MERSCORP Inc.  It seeks accountability for unlawful and deceptive practices in the foreclosure process, false documentation, and deceptive loan servicing and modifications.

The lawsuit is yet another example of why we need swift confirmation of Richard Cordray to head the new Consumer Financial Protection Bureau (CFPB).  The Bureau was created in response to the worst financial crisis since the Great Depression.  It reins in Wall Street and protects consumers, investors and taxpayers from further financial meltdown.  While the Bureau has been up and running since July, it does not gain its full authority to protect the public, particularly from unfair practices by non-bank actors, until it has a director in place.  Both Massachusetts Senators, John Kerry and Scott Brown, have indicated their support for Cordray, and a vote on his nomination is expected sometime next week.”