Massachusetts AG Scores Another Subprime Settlement
Sheri Qualters writes for The National Law Journal, an American Lawyer affiliate.
Massachusetts Attorney General Martha Coakley has reached a $17.3 million settlement with Countrywide Securities Corp. over the company’s residential mortgage securitization practices.
The deal brings her total settlements from similar investigations and lawsuits against banks to $301.8 million since 2009.
Coakley announced the deal with Countrywide, now part of Bank of America Corp., on Monday. Of the total, $11.3 million will go to the state pension fund, the Pension Reserves Investment Management Board. The remaining $6 million will be paid to state coffers.
"It is important to hold Wall Street accountable for its role in the subprime lending crisis. Our office will continue its leading role in this area as we work to help homeowners and others harmed by investment banks," Coakley said in a press release.
"We are pleased to have settled this matter, which relates to legacy Countrywide activities," Bank of America spokesman Rick Simon said.
The Massachusetts settlement streak began in May 2009, with Goldman Sachs & Co. agreeing to pay $60 million to homeowners and the state. In June 2010, Morgan Stanley agreed to pay $102 million. In November 2011, a Royal Bank of Scotland subsidiary agreed to pay $52 million to homeowners, the state and municipalities and other entities affected by foreclosures.
In September, Barclays Bank PLC agreed to pay $36.1 million to homeowners, the state, cities and towns affected by foreclosures and non-profit organizations working on foreclosure relief. Finally, last month JPMorgan Chase and Co. agreed to a $13 billion settlement of a Justice Department and multi-state probe. Massachusetts will collect $34.4 million of that total.