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Idaho AG’s office investigating foreclosure practices

Idaho’s Attorney General’s office is joining several other states in investigating mortgage foreclosure documents that may be flawed.

Deputy Attorney General Brett DeLange confirmed Oct. 12 his office was part of a mortgage foreclosure multi-state group, headed up by Iowa Attorney General Tom Miller. They will be reviewing a number of loan servicers that may have produced paperwork that had errors in it.

“Some of the paperwork may have been signed by people who didn’t have personal knowledge or facts about each case,” DeLange said.

The process of employees signing documents without reading them or understanding them is referred to as “robo-signing.”

DeLange also said some documents may also have been signed outside the presence of a notary. He wouldn’t name specific companies that would be investigated in Idaho, and declined to confirm or deny whether Bank of America was part of the probe.

Due to potentially faulty paperwork, Bank of America halted foreclosure proceedings in 50 states on Oct. 8, so the company could review thousands of documents, potentially affecting hundreds of Idahoans. The move comes after both GMAC Mortgage and JP Morgan Chase also stopped foreclosures and is reviewing documents in all 50 states. Both companies are continuing with foreclosure proceedings and sales. Only Bank of America has stopped actual foreclosures.

Idaho Department of Finance Consumer Finance Bureau Chief Mike Larsen also confirmed his office, which works closely with the attorney general’s office, would likely be involved in a task force reviewing procedures related to the recent moratorium on foreclosures.

“We want to make sure people have been treated in accordance with Idaho law,” Larsen said.

About Jennifer Gonzalez

Jennifer Gonzalez covers construction, real estate and development news. Contact her at jennifer.gonzalez@idahobusinessreview.com or 208.639.3515.