Nearly a year of intense negotiations over mortgage servicing and foreclosure abuses has resulted in the largest consumer financial protection settlement in U.S. history. Thousands of Washington state homeowners who have already lost their homes or are struggling with mortgages larger than the value of their property stand to benefit.
Attorney General Rob McKenna’s Consumer Protection Division has been conducting its own investigation since May 2010 into reports of lenders and trustee services not properly reviewing foreclosure documents or following other legal procedures. McKenna sent letters in October 2010 and April 2011, outlining concerns and calling on trustees to suspend questionable foreclosures in the state. In August 2011, he announced a lawsuit against ReconTrust Company, a subsidiary of Bank of America, for conducting illegal foreclosures on thousands of Washington homeowners. The office is investigating more than a dozen other trustees for suspected violations.