Multi-State Group Investigating Mortgage Foreclosure Practices
Oct. 13, 2010 In response to the recent finding that some mortgage loan servicers have submitted affidavits or other foreclosure documents that appear to have procedural defects, a group of state regulators and state attorneys general plan to focus on whether this process creates an unfair or deceptive practice and/or violates state law.
The group, the Multistate Mortgage Committee (MMC), was formed in 2008 to address mortgage examination issues is made up of 10 members elected from the boards of the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR).
The MMC, through the National Association of Attorneys General (NAAG), issued a statement on October 13 communicating that the group began an inquiry to determine whether or not individual mortgage servicers have improperly submitted affidavits or other documents related to foreclosures. Forty-nine state attorneys general have joined the effort, said NAAG in the statement.
The facts uncovered in the MMC study will determine the scope of the overall inquiry. To read more information, follow this link to NAAG's statement which lists participating states.