Attorneys General in a Fiery Mood to Investigate Lenders

Attorneys General in a Fiery Mood to Investigate Lenders

10/11/2010

Numerous attorneys general are getting fiery to pursue the investigation on the three financial institutions namely Bank of America Corp., JPMorgan Chase & Co., and Ally Financial Inc., regarding allegations on home foreclosures that partook of a fraudulent nature.

Customers of the three lenders, along with Congress, alleged that there were some fraudulent acts, which include the use of false signatures and documents in order to give justification to thousand of foreclosures.

Authorities in various states at least seven of them have been probing for these alleged fraudulent acts and according to several legal experts and state officials, the number of inquiries will just keep on growing.

Ohio Attorney General Richard Cordray said, “We have a high degree of skepticism that the corners that were cut are truly legal.” He also said that there would be more activity from various attorneys general in the U.S.

Homeowners in various states affected by the foreclosures would have to show proof of damages sustained in order to win a lawsuit, however, it is highly different with attorneys general. According to a University of Utah law professor, Christopher Peterson, attorneys general have the power to sue establishments for deceptive sales practices and get penalties for them.

Cordray also said that the penalties would apply for each affidavit that, “every instance of an affidavit that was filed improperly or every time facts were attested to that weren’t true.”

Bank of America has halted foreclosures in 50 states, while Ally Financial and JPMorgan curtailed foreclosures in 23 states.

WRITTEN BY:

blakeh@wellsdrew.com