Arizona Attorney General Goddard Supports Borrower Bill of Rights

From today’s front page of the Arizona Republic, full article here:

States Put Heat on Mortgage Lenders by Catherine Reagor

. . .

During a hearing Tuesday in front of the Senate Committee on Banking, Housing and Urban Affairs, executives from JPMorgan Chase & Co. and BofA said they are working to fix problems they have had in processing foreclosures.

The head of Chase’s lending division, David Lowman, was interrupted by angry protesters during his testimony.

Senators from both parties voiced frustration with lenders and regulators over the foreclosure mess and called for more investigations.

Republican Sen. Richard Shelby of Alabama said there needs to be more supervision of financial regulators who are overseeing the big lenders, including Fannie Mae and Freddie Mac.

Democrat Sen. Michael Bennet of Colorado said it was unclear why it has been so hard for lenders’ servicers to handle loan modifications.

“This is a bipartisan issue,” said Goddard. “For the first time I can re- member, all the AGs are in agreement over an issue.”

He said if lenders don’t agree to a settlement, then they could be facing lawsuits in 50 states.

An agreement with lenders won’t likely include a nationwide foreclosure moratorium. Goddard said there are foreclosures being handled legally and ethically that need to go forward so lenders can continue to operate and housing markets can move toward a recovery.

Separately, last month Goddard called for legislation to create a “borrowers’ bill of rights” in Arizona. The bill would require mortgage firms to act in good faith with debt-strapped homeowners, communicate promptly and make loan-modification decisions within 30 days.

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