Washington state AG: all mortgage trustees stop questionable foreclosures, FORGED DOCUMENTS

OLYMPIA, Wash. — Washington state Attorney General Rob McKenna Wednesday asked all mortgage trustees in the state to immediately stop what he called questionable foreclosures.

The attorney general’s office has received at least a dozen complaints and investigations have revealed that many foreclosure trustees are not following the law, McKenna said. Investigators have found faulty chains of title, failure to provide required disclosures, and inaccurate — if not forged — documents.

“We’re seeing the same name being signed with very different handwriting from document to document, which of course suggests that some of the foreclosure trustee employees are signing documents on behalf of other people instead of those individuals signing the documents themselves,” McKenna said.

The problems are not limited to big lenders, but include small trustees as well, said McKenna, along with investigators from the Department of Financial Institutions and Washington State Housing Finance Commission.

KIRO 7 Consumer Investigators contacted many of the trustees named by the attorney general’s office Wednesday. Those willing to comment said they were in full compliance, welcomed the added scrutiny and said it’s the other trustees being investigated, not them.

McKenna contradicted that, though, when asked if all trustees doing foreclosure business in Washington state are currently under investigation.

KIRO Reporter Amy Clancy: “Do you believe that all of them are guilty of some wrongdoing?”

McKenna: “We believe that it is likely that most of them, if not all of them, have been cutting corners.”

19 Responses

  1. Hey All,
    I would like to ask a favor.

    Let’s just screw with Northwest Trustee Services a bit. They have posted a job listing for a “foreclosure clerk.” Please call Jeff Stenman at 425-586-1900, when the company directory comes on, punch in 783…..and leave him a message asking why the job posting doesn’t include information about the Attorney General’s investigation. And specifically, that the new “clerk” would have to provide duties that would add them to the list of those investigated…..

    Please? Let’s just have some fun here today.

  2. The Washington AG has a new online form for submitting your mortgage complaint or trustee complaint. I am CONFIDENT that they are truly making an effort to conduct an investigation. PLEASE take a moment and send them your details. It gives them the tools they need. They have done a great job so far! Here is a link to the form on the site: https://fortress.wa.gov/atg/formhandler/ago/ForeclosureComplaintForm.aspx

  3. Why did my pension get changed from $935 per month to $6,900. per month if it was not to make my loan more marketable to IndyMac?

  4. MA Attorney General Martha Coakley does not give a crap. I have copies of all the proof I sent her and the response I got. She is guilty of dereliction of duty and we put these people in office and then the consumers
    are just an after thought.

  5. Our mayor, Mike McGinn has corrupt documents on his home. The media will eat this up.

    He has one doc that has TWO notaries in TWO DIFFERENT STATES signing on the SAME DAY. They better have evidence of flight receipts……that’s all I got to say. Wonder if my attorney wants to sue for quiet title on the Mayor’s home?

  6. Karen

    I should not have suggested that DOJs are not capable. In my state, there is reason to question – but, then again, we do not have Karen.

  7. Marla,

    In my case, Litton appointed the Trustee in 2009 and the NOD was filed by the trustee.

    Then they waited almost a full YEAR to file the very late assignment that assigns the DOT directly from the loan originator to the Pool in 2010.

    Remember: 1) Pool would have CLOSED in 2005 and 2) REMIC status and PSA are being ignored to put a non-performing loan into the pool at this late date. [If the pool still exists, only substitutions that REMOVE non-performing loans from the pool should be occurring!

  8. @Anon,
    We, here in the Northwest, are prime for the investigation. We sit with the headquarters of the most infamous WaMu and the documents sitting in the middle of our city….and also have the auditors that audited those documents…..we just have to encourage McKenna to go that deep…..he needs to see it’s beyond the “paperwork fraud front.” The fraud, as we know, runs much deeper.

  9. @Marla and socialapolcalypse,
    Send these documents to McKenna’s office. They need these bad documents.

  10. mymisstake

    Post was personal to Karen.

    As to insurance fraud – discrepancies between GSE records and bank records. Leads me to believe that loans may have been falsely placed in default – (insurance collected) as they were simultaneously being earmarked for a Trust by a refinance. In effect, the banks were acquiring GSE rejects. If this occurred – that would mean payoff was collected twice – once by insurance and second by actual payoff through refinance. Why do so many servicers identify themselves as a “debt collector” – right from the onset of the loan?

    Then this leads me to believe that the trusts were actually set up with the knowledge and intent that there would be an actual default. Could explain why assignments were never actually executed and fraudulently executed only upon default. Law firm who actually helped set up trusts – once told me – “the trusts were just a shell.”

    Much for AGs to investigate – but will they really do the job? And, are they capable of doing job?

  11. Northwest Trustee Services sent NOD 26 days before they were had the assignments registered with the register’s office of our county. There also seems to be a problem with the assignments.

  12. The Washington AG’s office is doing a fine job and all I want to say is way to Karen Pooley and Gang out there in Washington! That’s how homeowners stand up, get organized and fight until someone listens. Believe me, the AG will be acquiring much more documentation and hopefully homeowners educate themselves and start sending in whatever EVIDENCE they can find from robosigners to other “suspicious” documents EVEN IF YOU ARE NOT IN DEFAULT. Pack a sack lunch and take a trip to the courthouse. Get certified copies if necessary but you will see how fun this can really be when we all start to work together for one common goal: saving homes and exposing fraudulant loans!!

  13. Yep, Anon…..told ya.

    Glad I could assist with this effort.

    Our Rob hooked in the trustees and with potential forgeries…..gotta love our Rob!

  14. COMINGLING OF FUNDS

  15. Northwest Trustees did my NOD, and they have my home address wrong. How unbelievable.

  16. The seamstress will be busy !

  17. That makes no sense

  18. Orange suits – Karen!!! WOW!!

    And, to AGs – try insurance fraud – and not just default swaps!!

  19. I’m trying to figure out why my loan ($73,000) was put through as a Jumbo Loan. Must be a reason. Did I pay more for appraisal or higher interest?

    Everything is questionable.

    But its right there on the document Jumbo Loan.

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