Mortgage and Foreclosure – Florida AG joins Mortgage Foreclosure Multi State Group


Attorney General Bill McCollum announced last week an ongoing effort to rein in mortgage servicers and protect Floridians from purported deceptive and unfair practices. Along with 49 other attorneys general who are part of the Mortgage Foreclosure Multi State Group, McCollum is leading an effort to stop mortgage loan servicers from submitting alleged false affidavits in support of mortgage foreclosure actions.

Homeowners, attorneys and investigators have long alleged that many of the affidavits contained within mortgage foreclosure complaints have been signed without personal knowledge of the facts asserted within them. Having recently come to light is the fact that many of affidavits were signed outside of the presence of a notary public. This process of signing documents without confirming their accuracy has come to be known as “robo-signing” and is in direct violation of Florida law.

In an effort to effectively address and investigate the robo-signing crisis, the Mortgage Foreclosure Multi State Group is now comprised of all 50 state Attorneys General, mortgage regulators and state banks. Led by Iowa Attorney General Tom Miller, plans are being made to speak with all relevant mortgage servicers to determine whether they have properly submitted affidavits or signed notices in support of foreclosure actions.

State banks and mortgage regulators are participating both individually and through their Multistate Mortgage Committee, which represents mortgage regulators from all 50 states. As a member of the Executive Committee, Florida has taken a leading role in this multistate initiative. The Executive Committee is also comprised of Attorneys General from Arizona, California, Colorado, Connecticut, Illinois, Iowa, North Carolina, Ohio, Texas, and Washington; and state banking regulators from the Maryland Office of the Commissioner of Financial Regulation and the New York State Banking Department.

McCollum previously initiated an investigation of the Florida Default Law Group, the Law Offices of Marshall C. Watson, P.A.; the Law Offices of David J. Stern, P.A.; and Shapiro & Fishman, accusing the four firms of faulty foreclosure practices. Those firms are fighting back, with one of the legal showdowns taking place last week in Broward County, where lawyers for David J. Stern presented a motion to “quash” the state’s subpoena.

Ruling for the attorney general in his efforts to subpoena the foreclosure records of Stern’s law firm, Broward County Circuit Court Judge Eileen O’Connor denied the Plantation attorney’s motion to quash McCollum’s subpoena.

O’Connor’s ruling was in stark contrast to an earlier ruling in Palm Beach County, where a judge told McCollum’s lawyers they could not subpoena the records of Tampa-based foreclosure firm Shapiro & Fishman.

Stern’s attorney said he would appeal the case to the 4th District Court of Appeal, meaning the difference between the two cases may become an issue at the appellate level. “We respectfully disagree with the judge’s ruling and plan to file an appeal,” said attorney Jeffrey Tew, who represents Stern.

While O’Connor did not provide a reason for her ruling, Palm Beach County Circuit Court Judge Jack Cox stated that “only the Supreme Court controls the conduct of lawyers in the courtroom and in court proceedings,” and that the attorney general did not have a right to subpoena the records.

Meanwhile, Stern’s support company, the publicly traded DJSP Enterprises, confirmed that it was cutting back 10 percent of its workforce. DJSP had grown to about 1,100 employees during the height of the foreclosure crisis. Lawyers from Greenberg Traurig were also retained to mount an internal investigation into allegations that its employees helped fabricate court documents in foreclosure cases.

If you would like to learn more about the mortgage foreclosure crisis or to file a complaint with the Attorney General’s Office, visit their website at www.myfloridalegal.com or call (866) 9-NO-SCAM (866-966-7226).

Source:  The Credit Report with Bill Lewis – Highlands Today, an edition of the Tampa Tribune (Media General Group) – http://www2.highlandstoday.com/content/2010/oct/17/florida-ag-joins-mortgage-foreclosure-multi-state-/  To review Bill Lewis’ entire consumer protection series, please visit http://www.williamlewis.us

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

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