California and Neveda Attorney Generals Team Up to Fight Mortgage Foreclosure Fraud

California and Neveda Attorney Generals Team Up to Fight Mortgage Foreclosure Fraud

Kamala Harris, the California attorney general, may have stepped away from the 50 state attorney general coalition against mortgage and foreclosure fraud in Washington D.C., but she’s not turning down the pressure on mortgage lenders she believes fraudulently foreclosed on thousands of California homeowners. Harris and Catherine Masto, the Neveda Attorney General, have teamed up and been investigating the fraudulently foreclosed homes in their respective states. 

These two attorney generals teamed up due to their expressed dissatisfaction with the Washington D.C. investigation process. Their initiative is “designed to assist homeowners who have been harmed by misconduct and fraud in the mortgage industry,” the AGs say. 

Harris believes that the worst of the mortgage crisis has happened in California and Nevada and that in order to resolve these states’ housing issues it is important to enforce related laws and “hold those responsible.”

The two AGs will ad foreclosure rescue fraud to their foreclosure fraud investigations. Foreclosure rescue is when homeowners are offered assistance out of a foreclosure and after paying money they do not rescued. In most cases the homeowner is a abandoned. Masto has already initiated a criminal probe in her state that involves Lending Processing Services (LPS), and Harris is investigating LPS also. The two have said that they will not dismiss any deal proposed by the coalition of AGs in D.C. but assured state residents that they will “push ahead with [their] own work” as those negotiations continue.

New York and Delaware have also struck an agreement to investigate foreclosure fraud independently of the wider coalition. Do you think that the 50-state AG coalition (now minus a few) should just call it quits?

Should the 50 state AG coalition be more aggressive or should individual states start working on their own? 

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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