Indiana Continues Battle Against Top Mortgage Lenders

By Scott Sarvay

Indiana Continues Battle Against Top Mortgage Lenders

March 12, 2012 Updated Mar 12, 2012 at 3:16 PM EDT

INDIANAPOLIS (Indiana’s NewsCenter) - Indiana Attorney General Greg Zoeller announced Monday that Indiana will be joining 48 other states and the District of Columbia in a civil complaint against the nation’s five largest mortgage service providers.

The civil complaint was filed against Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC) and alleges that their actions “resulted in improper mortgages, premature and unauthorized foreclosures, violation of service members' and other homeowners' rights and protections, the use of false and deceptive affidavits and other documents, and the waste and abuse of taxpayer funds."

The complaint follows a joint investigation and a $25 billion settlement with the servicers that was announced in February at the U.S. Department of Justice in Washington, D.C.

Zoeller said the Indiana Legislature plans on allocating part of Indiana’s settlement share, estimated to be around $28 million, for the LIHEAP program which provides support to needy low-income households for utility bill payments. The Indiana Attorney General’s Office will also dedicate part of the money to help fund consumer protection, state foreclosure prevention efforts and related programs.

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