A month after reaching a record $25 billion foreclosure settlement with U.S. mortgage lenders, several states are ready to collect. Today it’s New York, which will collect $25 million from five major banks over their alleged abuse of the Mortgage Electronic Registration System (MERS).
The state attorney general’s office accused JPMorgan Chase & Co., Bank of America Corp. and Wells Fargo & Co. of using the electronic mortgage database for deceptive and fraudulent foreclosure filings. Citigroup Inc. and Ally Financial also agreed to a financial settlement, though they were not named in the New York lawsuit. None of the banks admitted or denied guilt as part of the deal.