Massachusetts pressed to reject 50-state foreclosure deal
Published: November 18, 2011
Time posted: 1:55 pm
BOSTON — Massachusetts housing advocates and victims of the housing crisis are pressing Attorney General Martha Coakley to reject a settlement over foreclosure abuses that federal officials and other state attorneys general are negotiating with major U.S. banks.
A reported $20-billion settlement amounts to “a slap on the wrist” for financial institutions whose practices fueled the economic crisis, critics of the resolution said.
The agreement was supposed to settle claims of poor mortgage and foreclosure practices, including document fraud known as “robo-signing,” approving documents in foreclosures without actually reading them.
The settlement has been in the works between the banks and attorneys general in all 50 states. Critics say it gives banks too much legal immunity.
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