Attorney General Sam Olens, along with 48 state attorneys general and the District of Columbia, joined the United States Department of Justice in alleging misconduct by the nation’s five largest mortgage servicers in a civil complaint filed today in federal court.
The complaint against the servicers, filed in the U.S. District Court for the District of Columbia, alleged that the servicers’ misconduct “resulted in the issuance of improper mortgages, premature and unauthorized foreclosures, violation of service members’ and other homeowners’ rights and protections, the use of false and deceptive affidavits and other documents, and the waste and abuse of taxpayer funds."
The defendants in the joint federal-state complaint include Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC).
The complaint follows a joint investigation and a $25 billion settlement with the servicers that was announced February 9, 2012.
The states and federal government Friday also submitted a series of proposed federal court orders, called consent judgments, which would formalize the settlements with each servicer.
In addition to relief for borrowers, the proposed settlement agreements include comprehensive reforms of mortgage loan servicing. An independent monitor has already begun work to oversee the implementation of the anticipated formalized agreements and to ensure compliance.
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Participating Mortgage Servicer Consumer Numbers