Oregon Joins Servicer Settlement

by devteam February 2nd, 2012 | Share

The Attorney General of Oregon announcedrntoday that he will join in the so-called 50-state Attorneys General settlementrnwith five major financial institutions that operate the large servicingrnorganizations.  The settlement arose outrnof a multi-state investigation of alleged improprieties the servicers’rnmanagement of delinquent loans and foreclosures.  </p

Attorney General John Kroger said in arnprepared statement that “The Oregon Department of Justice is deeply committedrnto protecting consumers.  In assessingrnany potential consumer protection settlement I compare the benefits of thernsettlement with potential benefits that might accrue in the future if we chosernto litigate rather than settle.  I havernmade that assessment in this case, and I am confident that signing thisrnagreement is in the best interest of Oregon consumers.”</p

Several attorneys general have remainedrnin settlement talks while pursuing litigation on their own while at least one, California’srnKamala Harris, withdrew from the settlement saying it provided inadequaternredress to the homeowners of her state.  </p

Kroger said that the settlementrnagreement penalizes banks which engaged in wrongful practices and brings badlyrnneeded relief for homeowners.  However,rnbecause the release in the agreement is narrowly drafted, Oregon will be ablernto pursue both multi-state and independent investigations of illegalrnsecuritization and other practices.  “Simplyrnput,” he said, “I am not confident we could get a better agreement on thisrnlimited set of issues if we litigated for several more years.”</p

The Attorney General said furtherrninformation on the agreement would be forthcoming but he released the followingrnhighlights:</p<ul type="disc"

  • An estimated $30 million to the State of Oregon.</li
  • An estimated $100 to $200 million in relief torn distressed Oregon homeowners including “underwater” borrowersrn and homeowners facing foreclosure.</li
  • Tough new servicing standards that protect allrn homeowners from unfair and unscrupulous servicing practices.</li</ul

    The agreement is not final and mustrnbe submitted to a federal judge for approval.

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  • About the Author


    Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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