Why Does Alabama Love Foreclosure Fraud?

/in /by

This is just an observation.

As of current reporting, Alabama’s Attorney General Troy King is the only state AG not to join in the joint investigation of foreclosure fraud. Even Michigan AG Mike Cox, whose spokesperson said investigating foreclosure fraud would amount to “politicizing the struggles of Michigan families,” has joined the investigation.

I find it interesting that, thus far, AL’s AG is not participating since AL is the state that tried to give us the eNotary bill. It was first introduced–in 2006, and then repeatedly since–by Robert Aderholt, a Congressman from AL. And it was pushed through after Patrick Leahy got snookered by a bunch of notaries in town for a Calvin Coolidge ceremony. But it was pushed through with the help of Senate Judiciary Ranking Member and Alabama Senator Jeff Sessions.

Now this may be one big coinkydink. Or it may be that Alabama’s Republicans just tend to like giving banksters unfettered reign (though AL’s other Senator, Richard Shelby, is calling for an investigation).

But I just find it worth noting.

Update: Looks like AL has now signed onto the investigation.

  1. cbl2 says:

    ew – do you really believe Leahy was “snookered” ?

    on a 3 paragraph bill ? pushed by a guy like Sessions ?

  3. wavpeac says:

    Thank you E.W for all your work on this. I can’t tell you how validating it is to finally see this story in big press. I don’t know what the outcome will be…but finally those of us who went through it…are not alone.

    I want to make one more point about the racism involved in these cases. So many of these loans were first time home buyers…some were the first generation of African american families who were going to be buying into the American dream. Many of these people did not KNOW that they were being mistreated. They did not KNOW that the rules were being broken. I have talked to so many people who did not know about TILA and RESPA laws. The only way I knew was because I had a loan in my previous marriage and had handled the finances. I had been late on payments before and never been treated the way I was in this loan. TILA and RESPA ARE paper tigers…but at least I knew they weren’t following the rules even if I couldn’t get anyone else to believe me…I knew. How many people quietly left their homes to become even more disenfranchised? For those of us, who tangled with these companies we witnessed lies, we witnessed bad balances and we were constantly not believed. The impact of this, is going to be so much more than just economics.

  4. Lindy says:

    From Left in Alabama:

    Now attorneys general in all 50 states (yes, even Troy King, although he was #50) and bank and mortgage regulators in 49 states (yes, Alabama is the laggard in this category) are participating in a multistate group

    inquiring whether or not individual mortgage servicers have improperly submitted affidavits or other documents in support of foreclosures in our states.

    Good for TK, but where the hell is the Alabama Banking Department on this? In cahoots with the big banks and our entire Congressional delegation to make foreclosures as easy as possible — for the banking industry — perhaps? If not, they need to get their name on this initiative ASAP.