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Right now your proposed rules for Avoiding Foreclosure presume every foreclosure is lawful, which is absurd. Unlike the national foreclosure fraud settlement, your proposals do not address wrongful foreclosures. However, even though the national foreclosure fraud suit alleges deceptive practices in wrongful foreclosures, the administration of the settlement will not stop them. Your proposed rules for “Avoiding Foreclosure” need to add a provision to stop an unlawful foreclosure in progress and you need to enforce the national foreclosure fraud settlement because the state attorneys general have no intention of doing so.
Page 27 of the multistate complaint, which is posted on nationalmortgagesettlement.com brought by the state attorneys general, the DOJ and other… more »
From page 27:
64. The Banks’ failure to follow appropriate foreclosure procedures,
and related unfair and deceptive practices include, but are not limited to, the following:
a. failing to properly identify the foreclosing party;
b. charging improper fees related to foreclosures;
c. preparing, executing, notarizing or presenting false and misleading documents, filing false and misleading documents with courts and government agencies, or otherwise using false or misleading documents as part of the foreclosure process (including, but not limited to, affidavits, declarations, certifications, substitutions of trustees, and assignments);
d. preparing, executing, or filing affidavits in foreclosure proceedings without personal knowledge of the assertions in the affidavits and without review of any information or documentation to verify the assertions in such affidavits. This practice of repeated false attestation of
information in affidavits is popularly known as “robosigning.” Where third parties engaged in robosigning on behalf of the Banks, they did so with the knowledge and approval of the Banks;
e. executing and filing affidavits in foreclosure proceedings that were not properly notarized in accordance with applicable state law;
f. misrepresenting the identity, office, or legal status of the affiant executing foreclosure-related documents;
g. inappropriately charging servicing, document creation, recordation and other costs and expenses related to foreclosures; and
h. inappropriately dual-tracking foreclosure and loan modification activities, and failing to communicate with borrowers with respect to foreclosure activities.
However, your proposed rule for Avoiding Foreclosure does not investigate whether the foreclosing party has committed a deceptive practice by foreclosing. The state attorneys general having brought suit over Wrongful Conduct Related to Foreclosures, but now will not investigate it or stop it, so it is up to the CFPB.
As of today:
* None of the state attorneys general offices or the CFPB will investigate and stop in progress the deceptive practices described beginning on page 27 of the lawsuit.
* None of the state attorneys general offices or the CFPB have a consumer complaint form on their website which seeks information about violations of the deceptive practices described beginning on page 27 of the lawsuit.
* None of the state attorneys general offices or the CFPB will acknowledge over the phone they have the authority to investigate and stop in progress the deceptive practices described beginning on page 27 of the lawsuit.
Would the CFPB propose a rule for Avoiding Foreclosure that will help with at least the following: Stop wrongful foreclosures based on deceptive practices in progress.
Justice will not happen on its own.
We could use some help. « less
As you may know, it has been the common public practice of bank regulators to listen to complaints from foreclosure fraud victims and respond by attempts at misdirection. Like children’s birthday party magicians regulators halfheartedly attempt to distract their audience with a shiny object in one hand, such as information management proposals, while looking away from the truth of Wall Street prosecution failure in the other. This has become so common place in local hearings and legislative testimony it has spawned new phrases into the English language such as “Regulatory Theater” and “Enforcement Fraud”. I support error correction. But error correction only corrects errors, not deceptive practices. A substantive response from the CFPB would… more »
Thank you for your comment, justiceunited. CFPB discusses the relationship of its proposals to the National Mortgage Settlement at several places in the NPRM. Here is a section that you might be especially interested in. Although you’re right that these proposals don’t directly prohibit wrongful foreclosures, CFPB thinks the proposed new information management and error correction requirements will help. So should requiring early… more »