Iowa part of 49 state foreclosure probe - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa part of 49 state foreclosure probe

DES MOINES (KWWL) -- Iowa is part of a 49-state foreclosure probe reviewing the practice of "robo-signing" in the mortgage industry. 

The Mortgage Foreclosure Multistate Group, which is made up of state attorneys general in 49 states and state banking and mortgage regulators in more than two dozen states, will investigate whether or not companies improperly submitted documents in support of foreclosures.

Specifically, they will investigate whether companies misrepresented on affidavits and other documents that they reviewed and verified supporting foreclosure documentation.

They'll also investigate whether companies also signed affidavits outside the presence of a notary public, along with other possible issues regarding servicing irregularities or abuses.

"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible.  Since this issue affects peoples' homes and has clear economic implications, this probe and its outcome need to be fair both to homeowners and also to lenders," Iowa Attorney General Tom Miller said in a written statement.

Submitting foreclosure documents without verification, with false representation, and signing certain legal documents outside the presence of a notary public may violate state laws and court rules.



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