The Bank Defendants frequently represent to borrowers and the public that they are actively assisting distressed borrowers...Instead, however, upon information and belief, each of the Bank. Defendants has deceived Massachusetts borrowers about loan modification requirements, by, without limitation., misrepresenting that:There's othe interestng stuff in the full suit --- Coakley is also suing MERS, the electronic land registry in which about 2/3rd of American mortgages are registered, saying it's unlawful.
---Borrowers must be over sixty days delinquent to get a loan modification, when in fact actual delinquency is not required. Borrowers may be eligible even if they are at simply at risk of imminent default. Such misrepresentations resat in increased and unnecessary defaults.
---If borrowers are over ninety days delinquent they will receive priority treatment, which is false; and which results in unnecessary additional defaults and extended delinquencies.
---Certain borrowers cannot be considered based oil the type or seasonal, nature of their income, when in fact such factors are not determinative of eligibility. This results in borrowers who otherwise may qualify for a loan modification being improperly denied or dissuaded from applying.
...In spite of the Bank Defendants' conduct above, certain borrowers have received loan modifications, often after waiting months, hiring counsel, and/or answering repeated requests to provide identical application information. Once approved, borrowers typically must execute and return written loan modifications to their servicer and then begin making the required modified monthly payments. On numerous occasions, however, and often after months of accepting the bo owers' payments pursuant to the very loan modifications the Bank Defendants approved, each of the Bank Defendants has informed these borrowers that their loan modifications were in fact rejected, were never accepted by investors, were never in place, and/or that foreclosure auctions were scheduled imminently...The Bank Defendants routinely make misrepresentations to borrowers and/or their counsel regarding pending foreclosure proceedings, including, among other misrepresentations, that while loan modification negotiations are occurring, foreclosure proceedings will not continue and/or that foreclosure auctions will be postponed. As negotiations progress, however, borrowers and/or their counsel often learn, whether through public notices or communications with other employees or agents of the relevant Bank Defendant, that the foreclosure auctions are continuing as scheduled.
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