Cuccinelli announced that he is joining a 49-state mortgage foreclosure working group, as part of a coordinated national effort by states to review the practice of so-called “robo-signing” within the mortgage servicing industry.
“Obviously, this issue affects peoples’ homes as well as the economy,” said Cuccinelli. “This probe will be thorough, expeditious, and fair to both homeowners and lenders.”
Submitting foreclosure documents without verification, with false representation, and/or signing certain legal documents outside the presence of a notary public may constitute deceptive practices and may otherwise violate Virginia’s consumer protection and/or foreclosure laws.
Kudos to Attorney-General Cuccinelli for standing up for Virginia’s families in the wake of these incredibly disturbing findings:
In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn’t define the word “affidavit.” Others didn’t know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers’ accusations about document fraud.
If these problems are popping up in judicial foreclosure states, states that have a process forcing a second look before a foreclosure, imagine what could be happening in our state where that never happens. This crisis has shown us that there definitely needs to be some sort of step that involves an impartial third party review prior to a foreclosure.