Posted: Oct 13, 2010 5:47 PM by Greg Boyce
WASHINGTON (AP) - As nearly all the state attorneys general prepare an investigation into the mortgage industry over the foreclosure-document mess, they're also discussing ways to settle the matter.
If the states have their way, mortgage companies will have to revamp the way they handle foreclosures, pay penalties for violations and expand help to homeowners on the verge of foreclosure. Iowa Attorney General Tom Miller, who will lead the investigation, says the top law enforcement officials of states around the country are already weighing the outlines of a potential settlement with the industry.
Miller says one idea being discussed is to create an independent monitor to review whether banks have fixed their problems.
Colorado Attorney General John Suthers is on board with the investigation. "Homeowners have a right to know that when their banks or lenders foreclose on their homes that all of the information used in the process is correct," Suthers said. "I signed onto this multi-state effort for the fundamental reason that we need to ensure the integrity of Colorado's foreclosure process. I look forward to gaining a full understanding of the policies and procedures these lenders and servicers have in place to properly verify the accuracy of the representations they make during the foreclosure process."
Suthers encouraged consumers facing foreclosure in Colorado to contact the Colorado Foreclosure Hotline, which can be reached at 1-877-601-HOPE. Consumers who believe they have the victim of mortgage or foreclosure fraud can file a complaint with the Office of the Attorney General.