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Massachusetts Sues Banks over Foreclosure Practices

HeadlineDec 02, 2011

Massachusetts has filed suit against five major banks over their alleged negligence in dealing with struggling homeowners. The lawsuit targets Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and GMAC. The banks are accused of “unlawful and deceptive” foreclosure practices including unlawful foreclosures, false documentation, robo-signing, and deceptive practices around modifying loans. The lawsuit could complicate the ongoing talks between banks and state prosecutors nationwide over reaching a comprehensive settlement over the same allegations. Details of the settlement had been expected sometime this month.

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