All 50 State AGs Launch National Foreclosure Probe

October 13, 2010 No Comments »

foreclosure

The Attorney General offices from all 50 states today launched a probe into the mishandling of foreclosure proceedings nationwide.

The so-called “Mortgage Foreclosure Multistate Group” is a coalition of 50 AGs, state-level mortgage regulators and bank oversight agencies.

It will jointly review the “accuracy and validity of documents” used by mortgage lenders and loan servicers to carry out foreclosure proceedings.

Specifically, the group will work to determine whether individuals who confirmed facts regarding foreclosures, either in affidavits or other related documents, actually had personal knowledge of what they signed off on (robosigners).

Both judicial and non-judicial foreclosures will be subject to the review of the workgroup.

“Our multistate group has begun inquiring whether or not individual mortgage servicers have improperly submitted affidavits or other documents in support of foreclosures in our states,” the group said in a statement.

“The facts uncovered in our review will dictate the scope of our inquiry.”

In other words, a foreclosure moratorium could be the result, but most likely not.

The White House said it was opposed to a national foreclosure freeze earlier this week, so don’t count on it.

Ally Financial and Chase have already stopped foreclosures in 23 states, while Bank of America took a big step in suspending foreclosures nationwide.

Wells Fargo, the top mortgage lender in the nation, continues to oppose a foreclosure moratorium, and is standing by its procedures.

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