>>> now to the foreclosure crisis. the attorney general of the commonwealth of massachusetts announced she is suing five of this nation's largest banks , accusing them of unlawful, deceptive practices that harmed borrowers and led to people being thrown out of their homes illegally. and she said she is going the make the banks pay. we get the story from our senior investigative correspondent lisa myers .
>> reporter: today, massachusetts attorney general march that coakley accused five big banks of making the foreclosure crisis worse. deceiving homeowners about loan modifications, unfair and deceptive foreclosure practices, and pervasive use of fraudulent documents, including robo-signing.
>> this seeks be accountability for the banks cutting corners and rush to go unnecessarily foreclose homeowners without following the rule of law.
>> reporter: the lawsuit comes on the heels of complaint by county property records officials, including john o'brien of salem. he accuses the banks of turning his office into a crime scene . so why do you call it a crime scene ?
>> because this registry has been infected with fraudulent documents.
>> reporter: his office identified 26,000 foreclosure filings signed by robo-signers. one involved carol, who has lived in this home all her life but lost her job and fell behind on her mortgage.
>> hi, lisa myers .
>> reporter: the day we visited she just received a notice. what did it say?
>> it said that the house was going to be auctioned off.
>> reporter: o'brien's office said carol's foreclosure is based on inaccurate, fabricated documents. her servicer disputes that. with 2 million home owners now facing foreclosure, the obama administration and state attorney general have been trying to negotiate a settlement in which banks would pay billions in return for protection against lawsuits. coakley said she's tired of waiting.
>> even if the banks think they are too big to fail, we believe they're not too big to have to follow the law.
>> reporter: the ceo of one of the banks said he's disappointed by the lawsuit and still hopes a settlement can be reached. lisa myers , nbc news, washington.
Source: http://video.msnbc.msn.com/nightly-news/45516508/
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