Alabama AG Strange voices concerns about scope of mortgage foreclosure deal

Luther Strange.jpgWASHINGTON — Alabama’s top prosecutor told Congress on Thursday that mortgage servicers who broke the law in dealing with homeowners should be punished, but he also cautioned against additional regulations that could slow down a recovery in the housing market.

Attorney General Luther Strange, a Republican, said he supported the efforts of all 50 state attorneys general in negotiating a settlement with the industry that was caught last year cutting corners in order to rush faulty mortgages into foreclosure. Those talks are likely to produce new rules for doing business as well as financial penalties for those who committed fraud, such as robo-signing documents without verifying key information.

But in testifying before members of the House Financial Services Committee, Strange said he suspected the deal might go too far.

“I am concerned that what started out as an effort to correct specific practices harmful to consumers has evolved into an attempt to establish an overarching regulatory scheme that fundamentally restructures the mortgage loan industry in the United States — an effort which is well beyond the scope of responsibility of attorneys general,” Strange said.

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This was from the comments on the article…

“So far in Alabama I don’t know of anybody that’s been foreclosed on that shouldn’t have been,” Strange said. Wow! Really? Is he kidding?

I am currently handling about ten cases, and I know of attorneys with many more. I am mediating a case TODAY where Bank of America foreclosed on my clients, and they didn’t even have a loan on the home.

This is absolutely amazing and shocking! To hear our State Attorney General suggest that there is no fraudclosure in Alabama is ridiculous and shows his total lack of having his finger on the pulse. Additionally, to say Alabama has adequate consumer protection laws is laughable. We have some of the worst consumer protection laws in the country.

I am just amazed.