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Coakley Joins Residential Mortgage-Backed Securities Working Group

Massachusetts Attorney General Martha Coakley joined with federal and state law officials, including U.S. Attorney General Eric Holder, to launch an initiative to help expose the abuses of residential mortgage-backed securities. 

The effort aims to hold those accountable who were responsible for the near-worthless mortgages that helped bankrupt many investors and contributed to the nation’s 2008 financial crisis.

Robert Khuzami, director of the enforcement division at the U.S. Securities and Exchange Commission said “the collapse in value of mortgage-backed securities resulted in unprecedented losses and “all of us” in law enforcement are dedicated to holding accountable financial institutions that lied and cheated and misled investors.”

Additionally, three Massachusetts congressmen, Barney Frank (D-Newton), Michael Capuano (D-Somerville), and Stephen Lynch (D-South Boston), urged federal housing officials to do more to help troubled homeowners avoid foreclosure – adding pressure on mortgage giants Freddie Mac and Fannie Mae to reverse a prohibition against reducing the size of struggling borrowers’ mortgage loans. For more on this story visit boston.com’s real estate section.