Wednesday, October 13, 2010

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Texas Joins Mortgage Foreclosure MultiState Group

AUSTIN – Texas Attorney General Greg Abbott today joined the Mortgage Foreclosure Multistate Group, a coalition of 50 attorneys general, state-level mortgage regulators and bank oversight agencies that will jointly review improper foreclosure processing procedures. The Texas Attorney General’s Office will serve on the workgroup’s Executive Committee.

The Mortgage Foreclosure Group’s chief focus will be the accuracy and validity of documents that lenders and servicers used to support foreclosure proceedings. Specifically, the states will review whether individuals who confirmed facts supporting foreclosures – either in affidavits or other related documents – actually had personal knowledge of the facts to which they swore.

Media links
Joint Statement of the Mortgage Foreclosure Multistate Group

In recent weeks, some lenders have acknowledged using electronic devices to sign sworn documents. To the extent so-called “robo-signing” was used to sign foreclosure documents, questions arise about the actual personal knowledge of employees whose signatures appeared on the affidavits. Thus, because thousands of documents were reportedly signed electronically, the states will review whether the signer actually confirmed the facts contained in their affidavits. The workgroup will also review whether foreclosure paperwork was signed outside of the presence of a notary public, contrary to state law. Both judicial and non-judicial foreclosures will be subject to the workgroup’s review.