State joins complaint against mortgage services
April 10, 2012
State Attorney General Rob McKenna and other legal officials from throughout the United States joined the U.S. Department of Justice and the Department of Housing and Urban Development to protest misconduct by the largest mortgage services in the nation.
The complaint against the banks, filed in the U.S. District Court for the District of Columbia, is a major step toward finalizing the biggest consumer protection settlement in U.S. history. The complaint claims the financial institutions’ misconduct “resulted in the issuance of improper mortgages, premature and unauthorized foreclosures, violation of service members’ and other homeowners’ rights and protections, the use of false and deceptive affidavits and other documents, and the waste and abuse of taxpayer funds.”
The complaint follows a joint investigation and a $25 billion settlement announced in February.
The parties also submitted a series of proposed federal court orders to formalize the settlements.
The settlement could provide $648 million in benefits to Washington homeowners. The state is still deciding how to best distribute $44 million for foreclosure relief and other programs.
In addition to the consumer relief, the proposed settlement agreements include comprehensive reforms of mortgage loan servicing practices.