Report: Group meeting in Boston to oppose foreclosure settlement

By Jessica M. Karmasek | Nov 15, 2011


BOSTON (Legal Newsline) -- Massachusetts Attorney General Martha Coakley is being pressured to reject a settlement with the nation's top mortgage servicers.

Critics -- including victims of the foreclosure crisis and state housing advocates -- were expected to rally in Boston Tuesday against the rumored $20 billion settlement, The Associated Press reported.

State attorneys general, the U.S. Justice Department, Treasury Department and the new Consumer Financial Protection Bureau are in the midst of negotiating a deal with lenders Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., Citigroup Inc. and Ally Financial Inc.

The probe began last October with inquiries into so-called "robosigning" practices by several mortgage companies, and has since broadened into identifying and addressing additional alleged improper foreclosure practices.

Critics of the settlement argue it's not enough.

In particular, they say liability releases would let the banks off the hook when it comes to future investigations.

A handful of state attorneys general have come out against the releases, including Coakley.

Coakley has already said she would hesitate signing a deal that could protect the banks from continuing mortgage investigations.

From Legal Newsline: Reach Jessica Karmasek by email at jessica@legalnewsline.com.

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