Will the 2010 AG Elections Hurt the Robo-Signing Investigation?
Over the past month, all 50 state attorneys general have been questioning banks incessantly concerning the continuing robo-signing scandal, where foreclosure paperwork and affidavits were submitted to the courts without due process (review). There could be a kink in the works, though: elections were held last Tuesday.
A 12 member executive committee had been formed for the express purpose of questioning the banks. After the Tuesday elections, though, half of that committee are now finding themselves in their last months of service. Ohio, Florida, California, Arizona, Connecticut and New York have all elected new attorneys general who will take office in January.
A highly visual attorney general in the group is Ohio Attorney General Richard Cordray. He had filed suit recently against Ally Financial (GMAC Mortgage) claiming that the bank’s employees had filed falsified foreclosure paperwork and affidavits. Richard Cordray lost his reelection bid to Mike DeWine, Republican. DeWine, though, hasn’t decided if he will further pursue the issue.
Peter Swire, former special assistant of economic policy at the White House and an Ohio State law professor, indicated that both Cordray and Iowa Attorney General Tom Miller were the most evident players in resolving this issue. Miller has the utmost confidence that, despite the losses of some of the attorneys general in the election, the investigation will continue. Miller continues by saying that the changes will not affect the work that is being done at the leadership and staff levels.
In a statement, Miller indicated that the attorneys’ general investigation is a bipartisan and unified effort with a mission to halt improper mortgage practices. It is imperative that the investigation be conducted quickly and methodically. The problem, though, is that it is not clear how much the committee can accomplish within the next two months, before the new attorneys general take office.
Cordray is confident, though, that the new group will continue with the investigation. He indicates that maybe the players will change but that it would be very surprising if there were any material changes. All of the current 50 states attorneys general are on board and all of them have indicated that this is a very important issue that needs to be solved as quickly as possible.
“AGs come and go all the time,” James Tierney, director of the National State Attorneys General Program at Columbia University, said. It happens all across the board when it comes to politics. Tierney indicates the matter as a non-issue; things will not change.
Iowa AG Tom Miller’s job may end up being more difficult now, though. There is a consensus that he will be a major decision maker. Miller will still hold his office and he is currently at the center of attention. He has already begun having meetings with various lenders about the issue.
Miller has indicated that the committee is very focused on the robo-signing issue, that’s what made the committee necessary in the first place. The committee, according to Miller, also wants to direct some of their focus on different, more comprehensive, solutions to this problem.
