50 State Attorneys General Announce Foreclosure Probe
October 13th, 2010Via: Washington Post:
The attorneys general of all 50 U.S. states announced Wednesday that they are joining to probe mortgage loan servicers who are accused of submitting false affidavits, but they stopped short of calling for a national moratorium.
The multistate investigation will initially focus on whether Bank of America, J.P. Morgan Chase, Ally Financial and other large mortgage companies made misleading or fraudulent statements to evict struggling borrowers from their homes.
Indiana Attorney General Greg Zoellersaid investigators initially will focus on whether industry employees – so-called “robo-signers” – signed off on thousands of foreclosures every month without reviewing the files as legally required. Homeowner attorneys also allege that lenders forged signatures and improperly notarized documents.
Such actions might have violated laws against unfair and deceptive trade practices, which could result in civil penalties. Typically the laws have been used to protect consumers from false advertising, but state officials say they could also be applied to foreclosure.
This is NICE! Sarcastically speaking of course.
Somewhere on this website is the Elliot Spitzer editorial about how the Bush administration was usurping states laws re mortgages. Yes, and when he pointed out that law for New York, look what happened to him.
Might have violated laws? Oh I think so many have been broken that no one knows.
I don’t know why this seems like a light. Not at the end of the tunnel. The world of finance and banking and economies seem like there in a very dark tunnel now, at least to me.
Maybe these states’ Attorney General’s actions are going to be the force that pulls the world out of the deep mine we’ve been mired in for so long.
And maybe its not a train light we see at the end of the tunnel, bur a light shining a way out of this mess. I personally have been thinking an absolute disaster, chaos, disorder, you name it re the banks and the Federal and world resistance to the schemes going down now.
If a total meltdown is what is needed to stop the shenanigan’s so be it. But it doesn’t make me happy to think on it. But there my thoughts go.