Opening a new front against the American banking industry, New York sued three of the nation’s biggest mortgage servicers over their use of an electronic database that, according to the Empire State, has resulted in widespread deception and fraudulent foreclosure practices.

The suit alleges that employees of the three institutions — Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. — filed false and misleading actions in New York and federal courts using the controversial Mortgage Electronic Registry System, undermining the state’s foreclosure process and public records system.

Read more: LA Times Febuary 3 2012

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