7 Banks Sue Cities Over Foreclosure Rules

July 2, 2014
Associated Press 
mortgage lending news
Ordinances designed to curtail foreclosures in the Massachusetts cities of Lynn and Worcester have come under attack by the industry.

Seven banks in the state are suing the municipalities on the grounds that they overstepped their authority by adopting the new laws. Only the commonwealth can establish rules pertaining to foreclosure proceedings, they argue, and giving communities free reign in this respect only creates a confusing and sometimes conflicting patchwork of laws across the state.

The banks are asking the court to block Lynn and Worcester from putting the ordinances in effect until federal judges determine the validity of a similar law in Springfield.

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