Legal Newsline

Monday, January 20, 2020

Bank of America, JP Morgan Chase, Wells Fargo and Citi to pay $2.7 million settlement

By Mark Payne | Jan 19, 2015

Massachusetts Attorney General Martha Coakley | Massachusetts Attorney General's Office

JP Morgan Chase, Bank of America, Wells Fargo Bank and Citi are settling a lawsuit involving foreclosures with Massachusetts, Massachusetts Attorney General Martha Coakley said Friday.

The four banks will pay $2.7 million to Massachusetts after they allegedly foreclosed on homes they didn’t have a right to foreclose. The lawsuit against the banks state said the banks ignored Massachusetts foreclosure law by foreclosing on properties that led to foreclosures that were deemed void.

Under Massachusetts law, a bank or another entity that wishes to foreclose must hold the mortgage or be the mortgagee on record in order submit a foreclosure, or the foreclosure is considered void. The suit alleges that the banks didn’t follow this law and then would follow on the foreclosures, essentially making the sale void.

“Our continued work to address illegal foreclosures in Massachusetts plays an important role in ensuring liquidity in our housing market and providing relief to homeowners who purchased properties with defective titles,” Coakley said. “This settlement holds these four national banks accountable for violating state law and cutting corners in the foreclosure process.”

Want to get notified whenever we write about any of these organizations ?

Sign-up Next time we write about any of these organizations, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Massachusetts Attorney General's OfficeWells Fargo & Company