Monday, December 13, 2010

WA state AG McKenna calls for mortgage trustees to suspend questionable foreclosures

SEATTLE – Washington Attorney General Rob McKenna announced today that his office has uncovered evidence that suggests foreclosure trustees are ignoring consumer protection laws in Washington, adding a new layer to a stack of problems reported in the mortgage-servicing industry. He sent letters today to 52 trustees outlining his concerns and calling on them to suspend any questionable foreclosures in the state.


“As part of our ongoing investigation, we have received complaints and information that indicate the Washington foreclosure process frequently includes inaccurate documents, conflicts-of-interest, faulty chains of title and failures to provide the disclosures and conduct mediations required by law,” McKenna said during a press conference today in Seattle with officials from the Department of Financial Institutions (DFI) and the Washington State Housing Finance Commission. “Some of these practices can deprive homeowners of their legal right to assert legitimate defenses in an action to save their homes.”

“Problems aren’t limited to the national banks and mortgage servicers, however, and appear to extend to foreclosure trustees,” he continued.

The Department of Financial Institutions shares McKenna’s concerns that some foreclosures may not have been processed according to Washington law, said Director Scott Jarvis

Read on.

Wa Trustee Letter

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