Mass. AG sees foreclosure deal with banks likely

AP News
Posted: Jan 18, 2012 4:07 PM
Mass. AG sees foreclosure deal with banks likely

The Massachusetts attorney general says it's likely some states will settle with banks sued over what she calls deceptive foreclosure practices.

Democrat Martha Coakley told the Greater Boston Chamber of Commerce on Wednesday she'll keep an open mind about whether Massachusetts would accept any such agreement. She expresses concern a settlement could include a $20 billion cap on how much banks must spend on loan modifications.

Coakley wants assurances Massachusetts homeowners would receive a fair share of loan modifications before a cap is reached.

Coakley sued Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and GMAC last month after talks between the banks and the 50 states failed to produce a settlement.

The banks have defended their practices. Some have expressed disappointment at being sued, calling instead for continued negotiations.