AZ conservative finally gets it on foreclosure fraud. Why?
Arizona may become the first state to require lenders to prove they have the right to foreclose by providing a complete list of any previous owners of the mortgage, under a bill passed yesterday by its Senate.
The legislation, which is headed to the House after being approved 28-2 in the Republican-dominated Senate, would allow foreclosure sales to be voided if lenders that didn’t originate the loan can’t produce the full chain of title. Arizona permits nonjudicial foreclosures, meaning property can be seized from the homeowner without a court order.
Lawmakers in states including New York, Oregon and Virginia also have proposed legislation to address concerns among consumer advocates that lenders or mortgage servicers are using incomplete or false paperwork to repossess properties in default. The attorneys general of all 50 states are jointly investigating how the mortgage-servicing industry operates.
“If you foreclose on somebody you should have to tell them who owns the property,” Michele Reagan, who sponsored Senate Bill 1259, said in a telephone interview. “People have the right in this country to face their accusers.” The Republican lawmaker is in litigation with her mortgage servicer, which she said won’t identify the owner of the loan.
The bill is opposed by the Arizona Bankers Association; the Arizona Trustees Association, which represents the trustees that conduct foreclosure auctions on behalf of lenders; and Merscorp Inc., an industry-owned company that operates a database with more than half of all U.S. mortgages.
Yes, I'm sure they do oppose it! That's because the CEOs of all these companies should be doing the perp walk in orange jumpsuits on the TV.