News & Media

Homeowners remain hopeful as Massachusetts AG sues big banks

Economic Security

December 6, 2011

PICO National Network, Massachusetts Communities Action Network (MCAN)

After months of pressing the state attorney general for a strong settlement with big banks, the Massachusetts Communities Action Network (MCAN) is hopeful that relief is on the way for struggling homeowners.

Massachusetts Attorney General Martha Coakley  recently announced that she filed suit against five major US banks for unlawful and deceptive foreclosure practices,  including unlawful foreclosures, false documentation, robo-signing, and deceptive practices related to loan modifications.  (

The lawsuit named Bank of America Corp., JP Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc., and GMAC.

"We commend Attorney General Coakley for stepping up and leading as the first AG in the country to move so strongly on this,'' MCAN Executive Director Lew Finfer  told the Boston Globe. He added that the suit "gives her a hammer to either compel more serious negotiations toward a good settlement or she can proceed with the lawsuit and hopefully win a strong decision anyway. "

National settlement negotiations over fraudulent foreclosure practices have dragged on for more than a year between major banks and the attorneys general from all 50 states. Since the talks began, PICO leaders and allies in the New Bottom Line campaign have met several times with lead negotiator Iowa Attorney General Tom Miller pressing him to stand with homeowners and not big banks.