Cooper wants foreclosures done right
Release date: 10/13/2010
Attorney General's Office gathering, reviewing information about
top 15 mortgage companies
Raleigh: Attorney General Roy Cooper's Consumer Protection
Division is reviewing the top 15 mortgage companies' foreclosure
processes to make sure they are fair and legal as part of an
ongoing investigation.
"Any mortgage company that's using a flawed foreclosure process
should stop until they correct the problems," Cooper said. "We're
continuing our investigation to determine if lenders who say they
are doing it right actually are, and if not, we'll take appropriate
action."
As of today, 14 of the top 15 mortgage companies operating in
the state have been in contact with Cooper's office in response to
letters sent earlier this month.
Of the mortgage companies that are part of the investigation,
GMAC, JP Morgan Chase, Bank of America, PNC Mortgage, and PHH
Mortgage have delayed foreclosures and halted foreclosure sales in
North Carolina while the review is underway. OneWest Bank is
postponing certain foreclosures while it submits re-verified
affidavits.
Several other mortgage companies, including BB&T Mortgage,
MetLife Home Loans, Sun Trust Mortgage, US Bank Home Mortgage, Citi
Mortgage and Wells Fargo, indicate that their own reviews have not
uncovered problems with their foreclosure processes. American Home
Mortgage Servicing and HSBC are continuing their internal reviews
and plan to respond in detail by the end of the week. Aurora Bank
has not yet responded and Cooper's office is preparing a follow-up
demand.
Cooper is seeking additional information from the companies as
part of his investigation into allegations that some may have filed
foreclosure affidavits without properly reviewing them or verifying
their accuracy.
Because many of the mortgage companies operating in North
Carolina also operate in other states, Cooper is working with a
multi-state group that is examining foreclosure practices across
the country. The national group includes all 50 state attorneys
general and 30 state banking and mortgage regulators, including the
North Carolina Office of the Commissioner of Banks.
North Carolina law requires lenders to make a good faith effort
to work out a loan modification before they proceed with a
foreclosure. Cooper is concerned that if foreclosures are not being
properly reviewed by lenders, some homeowners may not get a fair
chance at loan modifications that could save their homes.
"Some foreclosures are inevitable and need to happen, but
homeowners deserve a fair chance to save their homes when
possible," Cooper said.
Contact: Noelle Talley (919) 716-6413