Minnesota is investigating mortgage foreclosure practices

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Minnesota Attorney General Lori Swanson joined 48 other state attorneys generals this week in announcing a multi-state investigation into the mortgage foreclosure practices of some of the nation’s largest lenders.

In September, Swanson began an independent investigation of mortgage companies to determine whether allegations made elsewhere around the country of falsified affidavits, improper notarization, so-called “robo-signing” of documents and other inaccuracies may be plaguing these banks’ foreclosure process in Minnesota.

Swanson has also asked 15 lenders to temporarily halt foreclosures in Minnesota, until they respond to the questions posed by her investigation, and until they can provide assurances that their foreclosure processes are not tainted by the same troubling practices.

Swanson made the following comment regarding the investigation:

“We are in the fourth year of a housing and economic crisis that was brought on by lax practices of the mortgage lending industry. The latest allegations of corner cutting and slipshod paperwork are troubling, but perhaps not surprising, and they need to be addressed to ensure a fair and accurate foreclosure process in Minnesota.”

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