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Martha Coakley, Massachusetts Attorney General, Proceeding With Unlawful Foreclosure Lawsuits

Foreclosure Abuse Settlement

By The Associated Press   10/ 5/11 01:39 PM ET   AP

-- Massachusetts Attorney General Martha Coakley says she has lost confidence that a fair settlement over foreclosure abuses can be reached where banks are held accountable for wrongful foreclosures.

On Wednesday, Coakley said her office is proceeding with lawsuits relating to unlawful foreclosures.

Coakley is the latest official to undermine a resolution that has been in the works between major banks and attorneys general in all 50 states. Last week, California Attorney General Kamala Harris pulled out of the settlement talks. Other states including New York also have expressed reservations about the proposed settlement, which would compensate borrowers who faced improper foreclosures.

The agreement is targeted at settling claims of poor mortgage and foreclosure practices, including document fraud known as "robo-signing, or approving documents in foreclosures without reviewing them.

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Filed by Harry Bradford  |