BOSTON – Barclays Bank PLC will pay $36.1 million to settle allegations that it financed, purchased, and securitized residential loans that were “presumptively unfair” under Massachusetts law, Attorney General Martha Coakley announced last week.
The case marked the fourth announced by Coakley against Wall Street investment firms following investigations into their securitization practices. The case, as well as actions brought against investment giants Morgan Stanley, Goldman Sachs, and the Royal Bank of Scotland, has recovered more than $250 million in connection with securitization claims, assisting thousands of homeowners across the state, according to the AG’s office.
More than $25 million of the settlement will be used for principal reduction and related relief for more than 450 Massachusetts subprime borrowers. The state will receive more than $7 million. Approximately $2 million will go to cities and towns most acutely affected by foreclosures of Barclays securitized loans. Roughly $1 million will go to nonprofit organizations that are assisting with foreclosure relief efforts in Massachusetts. •