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If the ruling in a particular case involving Fannie Mae and MERS of Superior Court of Massachusetts goes in favour of the homeowner Eaton retroactively, it will stir up a hornets’ nest involving 40,000 properties in the state; it will stir up similar actions across America
The hasty settlement, sans in-depth investigations between the government and the banks indicate that the latter is trying to cover up the lapses of the latter for an amount that is not in proportion to the abuses. Some attorney generals have launched out on their own to pin down the banks and their sincere efforts are bearing fruit.
Following the lawsuit filed against GMAC by the A.G. of Massachusetts, the mortgage firm has stopped its lending operations in the state. Along with other mega banks serious charges of corrupt practices have been brought against it – robo-singing, illegal foreclosures, deception in modification etc.
Tom Miller, the attorney general of Iowa said that a settlement is about to be reached with the banks but it will not release them from future lawsuits the state government and municipalities may file against the banks for issues pertaining to mortgage-backed securities and depriving the counties from registration fees.
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