OREGON ATTORNEY GENERAL JOHN KROGER ANNOUNCES MULTI-STATE INVESTIGATION INTO MORTGAGE FORECLOSURE IRREGULARITIES
October 13, 2010 – (RealEstateRama) — Attorney General John Kroger and the Oregon Department of Consumer and Business Services today announced a multi-state investigation into whether affidavits and other documents have been improperly used as part of the foreclosure process.
“It’s crucial that we find out whether Oregonians are losing their homes based on improper foreclosures,” said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General Kroger. “And if wrongdoing is discovered, we need to put a stop to it.”
It has recently come to light that a number of mortgage loan servicers have improperly submitted affidavits or improperly signed other documents in support of either a judicial or non-judicial foreclosure. In particular, it appears affidavits and other documents have been signed by persons who did not have personal knowledge of the facts asserted in the documents. In addition, it appears that many affidavits were signed outside of the presence of a notary public, contrary to state law. This process of signing documents without confirming their accuracy has come to be known as “robo-signing.”
Such a process may constitute a deceptive act and/or an unfair practice or otherwise violate state laws.
Oregon is not a judicial foreclosure state, which means that a court does not approve a lender’s decision to foreclose on a home. As a consequence, the affidavits that have come under fire in other states as being false are not used here in Oregon. However, in 2009 the Legislature passed SB 628, which requires lenders to tell homeowners that they have certain basic rights, including a right to request a loan modification and a right to meet with their lender before foreclosure can be initiated. It also requires the lender file an affidavit in support of the foreclosure. In 2010, the Legislature strengthened those protections (SB 3610) by requiring that the affidavit be filed at least 5 days in advance and that the lender provide an explanation if the loan modification doesn’t qualify, among other things.
Compliance with SB 628 and SB 3610 (Codified as Oregon Revised Statutes 86.737) will be a special focus for the Oregon Department of Justice and the Department of Consumer and Business Services as part of the multi-state investigation.
Attorney General Kroger created a mortgage fraud task force that has been closely monitoring foreclosure activity. The Task Force has obtained multiple civil settlements banning from Oregon out-of-state loan modifiers who violated Oregon law as well as criminal convictions.
The multi-state group includes state attorneys general and state bank and mortgage regulators.
Attorney General John Kroger leads the Oregon Department of Justice. The Department’s mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.
The Department of Consumer and Business Services regulates banks and mortgage lenders through its Division of Finance and Corporate Securities. The department’s mission is to protect and serve Oregon’s consumers and workers while supporting a positive business climate in the state.
Contact:
Tony Green, (503) 378-6002 tony.green (at) doj.state.or (dot) us |
Comments
I have been meaning to post about something like this on my website and this has given me an idea. Thank you.
Leave a comment
No related posts.
Recent Posts
-
- IDX Acquires RealLead, a Real-Time Lead Capture Solution For Realtors
- Roz Anderson of Dwellings Real Estate has adopted a custom IDX solution to sync listings to dynamic website
- Debbie Smith connects with her clients in dynamic fashion with addition of IDX Broker software
- IDX, Inc. simplifies online real estate search on iPhone-enabled website of Eric Post
- Cascade Sotheby’s International Realty and Debra Tebbs bring detailed real estate searches to her website with the addition of IDX Broker software
Popular Posts
-
- Lee Moore Elected Housing Authority of Portland Board Chair
- Brooks Resources' President confirmed to State Board of Higher Education
- Tetherow Integrates Elegant Lodging, David Kidd Golf and Luxury Homesites Minutes from Downtown Bend
- State takes enforcement action against four mortgage brokers
- Oregon receives grant money for foreclosure counseling and assistance
- Realtor and Loan Broker Admit Participating in Scheme As Part of Pretrial Diversion Agreements
- Public has opportunity to learn about and discuss fair housing forums scheduled for Tillamook, Klamath Falls, Pendleton and Salem
- The Wyatt, Portland's Premier Loft Apartments Features 'Portland Happy Hour Guidebook' Author at First Thursday Even
- Real Estate Loan Officer Pleads Guilty to Mortgage Fraud Scheme
- Merkley Joins Effort to Protect Servicemembers From Falling Victim to Mortgage Abuses
We are in default on mortgage and may be facing foreclosure, and now believe we may have had mortgage fraud when we bought the home 4 yrs ago. We were not allowed to see the papers or take them home to read, prior to signing. We were told by title company that is not allowed on a 1st mortgage. Also the broker we used promised a 0% down, but later when we made an offer on our condo he said we must put down $1000 which would be refunded after signing papers, but never did refund it. That money was borrowed from Family and we were unable to pay it back. The broker also said he would get us a debt consolidation loan after we signed papers because we told him couln’t afford the mortgage unless that was done, but later he could not get us consolidation loan. Our original Mortgage holder-Ownit Solutions, shortly after the purchase sold our loans to Litton Loan Svcing and GMAC Mortgage so we suddenly had a 1st & 2nd mortgage instead of 1. We believe that we were subjected to unfair practices, especially when the broker was someone selected from our local newspaper, the “Oregonian” section.