Massachusetts' highest court on Friday voided foreclosures on two homes because the servicers that tried to take title to the properties failed to show they held the mortgages at the time of foreclosure.

The ruling by the Supreme Judicial Court upheld a lower court ruling against U.S. Bancorp and Wells Fargo, and sent the share price of certain large banks lower while fanning fears that if other states rule the same way the foreclosure and REO market could slow to a crawl.

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