JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC) and Citigroup Inc. (C) were among five banks sued by Massachusetts for allegedly conducting unlawful foreclosures and deceiving homeowners.
Massachusetts Attorney General Martha Coakley filed the lawsuit today against the three banks, as well as Wells Fargo & Co. (WFC) and Ally Financial Inc., in state court in Boston. The banks are accused of engaging in unfair and deceptive trade practices in violation of state law, according to the attorney general.
“We believe the stakes could not be higher at this stage of the game,” Coakley said at a press conference in Boston. “The foreclosure crisis continues to be at the root of the economic mess that we find ourselves in and our inability to turn it around.”
State attorneys general across the country have been negotiating a possible settlement with the five banks that would resolve a probe into foreclosure practices that began more than a year ago following disclosures that faulty documents were being used to seize homes.