Feb. 10, 2012: In a national case settled this week, large banks will provide payments to borrowers who lost their homes, as well as loan modifications and other concessions to help the foreclosure crisis. But a related issue that could benefit the Community Preservation Act has yet to be decided.
The settlement, which will bring $318 million to Massachusetts, allows for Attorney General Martha Coakley to proceed with her lawsuit against Mortgage Electronic Registry Systems (MERS), the company set up by banks to bundle and sell mortgages. MERS bypasses registration of transactions at the Registry of Deeds, which deprives funding for the CPA statewide Trust Fund and contributes to opacity in the real estate market. To learn more about this issue, see our December news article.
"We believe it's a good step, but we also believe it's only one in a continuous path," Coakley said. The Coalition will continue to monitor the MERS case, as it could have ramifications on the statewide CPA trust fund collections.
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"Mass. Joins foreclosure settlement with banks, $318 mil in relief estimated," by Matt Murphy. February 9, 2012