Foreclosure fund for robo-sign victims under consideration: Iowa AG
A fund to compensate homeowners caught in the foreclosure robo-signing scandal is being considered but is not a done deal, according to Iowa Attorney General Tom Miller's office. A spokesman for Miller's office told HousingWire that a fund is not currently being set up but is "one of many options being considered." Major lenders including Bank of America (BAC), JPMorgan Chase (JPM), Ally Financial (GJM) and Wells Fargo (WFC) are under a joint investigation from the 50-state attorneys general and 11 federal regulators for allegedly signing foreclosure affidavits en masse and without properly reviewing the documentation. Miller's office is leading the AG investigation. "It’s very early, there are no details, and this is by no means a done deal," the spokesman said. "Again, it’s a preliminary discussion on one of many potential options." At any rate, aggrieved homeowners should not get their hopes up, as sources involved in logistical management of issues such as this say that such a fund, if approved, would take a long time to finance. Testifying before the Senate Banking, Housing and Urban Affairs Committee Tuesday, Miller said the AGs do not view robo-signing as a technical issue, rather an affront to state courts. "We view this as a chance to solve some or much of this problem that has built over the last three years," Miller said. "We want to figure out a way that leaves the situation a lot better than when the mess started." Write to Jon Prior.