Ohio Attorney General is Up in Arms About Wells Fargo’s Robo-Signing Announcement
Ohio Attorney General Richard Cordray is up in arms concerning the continuing robo-signing scandal. Wells Fargo had announced last week that they were going to submit new foreclosure affidavits and proceed with foreclosures. Cordray feels that this “band-aid” is more of a cover-up than a cure. He thinks that Wells Fargo and several other banks, can’t seriously hope to rectify the problem of fraudulent testimony. Cordray also indicated that these institutions clearly don’t recognize the seriousness of the problem.
When Wells Fargo announced its plan last week to submit new foreclosure affidavits they actually used the words: “out of an abundance of caution.” Wells Fargo has decided, out of this abundance of caution, to submit supplemental foreclosure affidavits pending before 23 judicial foreclosure states’ courts, approximately 55,000 of them.
Supplemental affidavits are clearly insufficient in Cordray’s mind.
The Ohio Attorney General’s office, and even Cordray himself, has asked both Ally Financial (GMAC Mortgage) and Wells Fargo to withdraw any motion where an improper affidavit was submitted that resulted in a judgment. It was also asked that both banks not proceed to evict any homeowner or proceed to foreclose on any property in any instance where fraudulent evidence was submitted to the court.
Cordray is of the opinion that a person has no way to defend against a foreclosure notice that was received through fraudulent evidence.
Ohio Attorney General Richard Cordray was the first to go after Ally Financial (formerly GMAC) early last month. Cordray brought lawsuits, alleging misconduct with mortgage financing, against the 3 largest credit rating agencies. Because of Cordray’s efforts, he was profiled in the March 2010 issue of HousingWire.
Cordray indicated that there might need to be more lawsuits needed in the HousingWire profile. Since he has, other state attorneys general are also investigating the matter.
Along with Ally Financial (GMAC Mortgage), several major lenders, which include JPMorgan, Wells Fargo and Bank of America, are being bombarded with allegations for admitting employees signed foreclosure affidavits with out due process (review). Attorneys General of 50 states announced, two weeks ago, that a coalition will investigate lenders who filed erroneous foreclosure affidavits. Ohio AG Richard Cordray declined to discuss or comment about the 50-state investigation or even about the conversations he had with other AG’s about the matter.
A spokesman for Ally Financial, James Olecki, responded to the accusations given by the Ohio AG lawsuit, by replying “There was nothing fraudulent or deceitful about GMAC Mortgage’s practices.” Olecki further says that GMAC immediately remedied any procedural mistakes made in the completion of various legal documents.
The Ohio AG lawsuit alleges that Ally Financial (GMAC Mortgage) and its employees violated the state’s consumer protection laws because they filed, in Ohio alone, hundreds of fraudulent foreclosure affidavits.
A Wells Fargo spokeswoman has indicated that the company will cooperate with Cordray’s inquires but they are of the opinion that none of these instances actually led to any unlawful foreclosures. Bank of America declined to respond to Cordray’s allegations.
Even though the banks in question wish it, this problem will not go away on its own. Their “band-aid” won’t help, either, because of the simple fact that the problem will still fester.
[...] 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 [...]