Finally the government has announced what we in the industry have suspected for a long time – highly questionable and likely illegal conduct in foreclosures.
The Treasury Department, HUD, the Justice Department and other federal agencies and state attorney generals are aggressively investigating these problems. Asset management companies are an integral part of the foreclosure process. It’s likely that asset management companies will soon be part of these investigations.
As one example of irregular behavior, we know of an asset management firm that has communicated to all agents that they are restricted to the use of one single service provider, sending correspondence warning agents that if they do not to use their preferred service provider, agents would have to pay for the services out of their own pockets.
While attorney generals in all 50 states are conducting a joint investigation into how lenders managed the foreclosure process, RE Insider is asking the same AG’s and government agencies to look into Asset Management companies and their single sourcing procedures.
Federal Reserve Chairman Bernard Bernanke said, “We take violations of proper procedures seriously.”
And frankly, so do we at RE Insider. Do you know something that can shed more light on these practices? Let us know.