Officials in 50 states and the District of Columbia have launched a joint investigation into allegations that mortgage co.’s mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners. Attorneys general are calling into question the accuracy and legitimacy of documents that lenders relied on to evict people from the homes. – Reuters
A bipartisan group of state attorneys general from 49 states and financial regulators from 39 states will work together to comb through foreclosure filings and documents from mortgage servicers to see if any state laws have been broken in the rush by services to kick borrowers out of their homes without following various state and local laws.
Homeowners, homeowner advocates and various state officials have complained that mortgage servicers have failed to follow basic procedures, like reviewing documents, properly signing them and other tasks long followed prior to the mortgage securitization boom that took off this decade.
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