Another election day has come and gone, and the talking heads have done their part to analyze what it all meant. One thing that has gone relatively unnoticed, however, was the nationwide results of many state attorney general elections. Of the 50 attorneys general that are currently investigating mortgage lender inproprieties, 17 were voted out of office. Included in this sweep was one of the leaders of mortgage fraud investigations, Ohio Attorney General Richard Cordray (who recently filed a lawsuit against Ally Financial’s GMAC Mortgage).
What does this mean for consumers and homeowners facing foreclosure? It’s hard to say at this point whether the newly elected attorneys general will pursue this matter with the same interest as their predecessors. However, one thing that is likely is at least a slowdown in the investigations as new administrations are established. There is a learning curve for every job, and the position of attorney general is no exception. Time will tell if they continue investigating robo-signers, mortgage fraud, and wrongful foreclosures. In the meantime, homeowners facing default or foreclosure would be well served to contact legal counsel to assess their rights and determine if the bank has acted wrongly.