State Attorneys General Foreclosure Settlement : Consent Judgment Exhibits A-I

Here is an excerpt of consent judgment especially foreclosure and bankruptcy information:

The provisions outlined below are intended to apply to loans secured by owner-occupied

properties that serve as the primary residence of the borrower unless otherwise noted

herein.

I. FORECLOSURE AND BANKRUPTCY INFORMATION AND DOCUMENTATION.

Unless otherwise specified, these provisions shall apply to bankruptcy and

foreclosures in all jurisdictions regardless of whether the jurisdiction has a

judicial, non-judicial or quasi-judicial process for foreclosures and regardless of

whether a statement is submitted during the foreclosure or bankruptcy process in

the form of an affidavit, sworn statement or declarations under penalty of perjury

(to the extent stated to be based on personal knowledge) (“Declaration”).

A. Standards for Documents Used in Foreclosure and Bankruptcy

Proceedings.

1. Servicer shall ensure that factual assertions made in pleadings

(complaint, counterclaim, cross-claim, answer or similar

pleadings), bankruptcy proofs of claim (including any facts

provided by Servicer or based on information provided by the

Servicer that are included in any attachment and submitted to

establish the truth of such facts) (“POC”), Declarations, affidavits,

and sworn statements filed by or on behalf of Servicer in judicial

foreclosures or bankruptcy proceedings and notices of default,

notices of sale and similar notices submitted by or on behalf of

Servicer in non-judicial foreclosures are accurate and complete and

are supported by competent and reliable evidence. Before a loan is

referred to non-judicial foreclosure, Servicer shall ensure that it has

reviewed competent and reliable evidence to substantiate the

borrower’s default and the right to foreclose, including the

borrower’s loan status and loan information.

2. Servicer shall ensure that affidavits, sworn statements, and

Declarations are based on personal knowledge, which may be

based on the affiant’s review of Servicer’s books and records, in

accordance with the evidentiary requirements of applicable state or

federal law.

3. Servicer shall ensure that affidavits, sworn statements and

Declarations executed by Servicer’s affiants are based on the

affiant’s review and personal knowledge of the accuracy and

completeness of the assertions in the affidavit, sworn statement or

Declaration, set out facts that Servicer reasonably believes would

be admissible in evidence, and show that the affiant is competent

to testify on the matters stated. Affiants shall confirm that they

have reviewed competent and reliable evidence to substantiate the

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borrower’s default and the right to foreclose, including the

borrower’s loan status and required loan ownership information. If

an affiant relies on a review of business records for the basis of its

affidavit, the referenced business record shall be attached if

required by applicable state or federal law or court rule. This

provision does not apply to affidavits, sworn statements and

Declarations signed by counsel based solely on counsel’s personal

knowledge (such as affidavits of counsel relating to service of

process, extensions of time, or fee petitions) that are not based on a

review of Servicer’s books and records. Separate affidavits, sworn

statements or Declarations shall be used when one affiant does not

have requisite personal knowledge of all required information.

4. Servicer shall have standards for qualifications, training and

supervision of employees. Servicer shall train and supervise

employees who regularly prepare or execute affidavits, sworn

statements or Declarations. Each such employee shall sign a

certification that he or she has received the training. Servicer shall

oversee the training completion to ensure each required employee

properly and timely completes such training. Servicer shall

maintain written records confirming that each such employee has

completed the training and the subjects covered by the training.

And here is state AGs' complaint which laid out the banks' bankruptcy-related conduct:

C. The Banks’ Bankruptcy-Related Misconduct

90. In the ordinary course of their businesses, the Banks regularly

appear as creditors, or on behalf of creditors, in bankruptcy cases, including

bankruptcy cases commenced in this district and over which this Court has

original jurisdiction under 28 U.S.C. § 1334, seeking the payment of money from

bankruptcy estates and/or prosecuting motions seeking relief from the automatic

stay to foreclose on consumer mortgages.

91. The Banks have bankruptcy procedures that are utilized or relied

upon by the Banks and their attorneys, contractors, and other agents when the

Banks file documents, including proofs of claim and motions seeking relief from

the automatic stay in bankruptcy cases. Use of these bankruptcy procedures has

resulted in an insufficient level of oversight and safeguards regarding pleadings

and documents filed by the Banks or their agents in bankruptcy cases and their

conduct during the bankruptcy cases.

92. Use of these bankruptcy procedures has resulted in the filing of

signed pleadings and documents in bankruptcy cases as to which the signatory has

not conducted a reasonable inquiry into the factual contentions or allegations, as

required by applicable law, including Fed. R. Civ. P. 11 and Fed. R. Bankr. P.

9011.

93. Use of these bankruptcy procedures has also resulted in a failure to

exercise adequate supervision over the Banks’ attorneys, contractors, and other

agents in bankruptcy proceedings.

 

And this is another example of bankruptcy misconduct…

i. collecting, or attempting to collect, attorney’s fees and

other charges for the preparation and filing of proofs of claim, motions for

relief from stay, or other documents, that the Banks ultimately withdrew

or that a court denied;

Here are the other banks' consent judgment:

Ally/GMAC Consent Judgment (pdf)

Bank of America Consent Judgment (pdf)

Citi Consent Judgment (pdf)

JPMorgan Chase Consent Judgment (pdf)

Wells Fargo Consent Judgment (pdf)