Attorneys general from 49 states have agreed to coordinate efforts to investigate the nation's foreclosure mess and determine whether servicers violated state laws by cutting corners when filing their paperwork.
Banking and mortgage regulators from 37 states also joined the Mortgage Foreclosure Multistate Group, which will focus on servicers that allowed individuals to sign thousands of affidavits in foreclosure cases without verifying the information.
This process known as "robo-signing" may constitute a "deceptive and unfair practice in violation of state laws," according to a statement released by the MFMG.
The working task force quickly appointed 11 state AGs and three state banking regulators to serve on its executive committee.
Executive committee member Ohio AG Richard Cordray said the task force will contact a "comprehensive" list of servicers.
"This is the clearest signal yet to major mortgage lenders and servicers that they need to take serious measures to fix the problems with affidavits," said Cordray. "What we have seen is not mere technicalities as some suggest; rather, this is about the private property rights of homeowners facing foreclosure and the integrity of our court system, which cannot enter judgments based on fraudulent evidence."
Earlier in the week several state AGs signed onto the idea of forming a task force. The official announcement came Wednesday morning.
