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The foreclosure fiasco investigation by fifty state attorneys general being impacted by recent elections.
Seventeen states will have new -- he's come January -- leading some to speculate that current officeholders will accelerate their investigation.
Before their terms expire one of those who has led the fight -- -- foreclosure paperwork to Ohio's Richard court -- He lost his reelection bid and it now joins us from Columbus welcome -- good to see you.
Good to be with you.
-- -- literary theory it's gonna try to get this done before January 1 to -- finish this out before.
I guess there's like seventeen AG's across country there -- change change here.
I think the election is -- just a factor but I don't think it's a significant factor.
Even before the election came and went there was a lot of sentiment among a number of the attorneys general.
If we could wrap this up in a prompt time frame.
With a reasonable resolution here but he understands that that will be better for the economy better for the housing market.
They have to be reasonable resolution that makes meaningful change in the behavior -- the big banks who have.
Really taken a slightly to -- And need to appreciate the exposure they have and the importance of getting the for closure problem under better control.
Well -- and you filed -- the court brief that was filed in the -- location -- -- -- tell us about that.
It's safe for closure case like thousands of others across the country.
Although in this when GM AC submitted.
Affidavit from Jeff Stephon -- -- -- now notorious robo signers.
So therefore fraudulent evidence submitted to the court.
GM AC sought to withdraw the evidence the judge said no.
We want to have you brief instead what the integrity of this evidence was.
We -- a friend of the court brief if the court our perspective.
She welcomed that perspective she's a strong independent decision maker and she will figure out what she thinks needs to be done we did have a hearing.
At which she set a timeframe with further briefing and submissions in front of her and she will consider what's the proper remedy any case like this for that kind of misconduct.
So my understands you're gonna get back at that hearing is set for February is that correct.
Tell me do you think that bill lenders the banks in these cases should be able to -- other filings or change them or.
That you know the homeowners should that homeowners who is in -- career should just win the case outright.
I think they'll certainly.
Be amending their filings and they need to amend their filings because what they've essentially acknowledged is that the prior.
Filings were fraudulent.
And that's a fraud -- the court what they don't seem to be quite understanding at this point is you can amend your filing.
And then a court will decide what to do.
They may -- may not accept the amended filing and they may accept it but also sanction you for your prior misconduct there's a lot of exposure that these.
In thousands of courts across the country different judges will handle this differently.
I think that if they focus in on the extent of their exposure it will lead them to try to find creative solutions sensible solutions that try to put this for closure problem.
Behind them in a meaningful way which is something they've not done to date over several years.
-- staring him in the face.
And I think it may be an opportunity for investors for these servicers for the lenders.
And for the homeowners to try to get some sort of comprehensive resolution here that certain well.
-- you bring up the phrase comprehensive resolution because I think the first time that you and I spoke.
Well we were talking about with an investigation a probe and then suddenly the topic changed to.
That there was supposed to be some kind of grand huge settlement money changing hands in this case -- -- -- how we go from let's find out what's wrong to pay some money.
I don't think that that's inaccurate description of what happened here they are investigating.
What we're investigating what the big servicers have acknowledged which is that they have problems in tens of thousands of cases problems that they make for themselves we didn't create them for them.
-- -- estimate -- could this insights that if you pistol out.
Yet as we investigated this could drag on for years and it could go forward and lots of different courts -- country if we can work -- a resolution that is comprehensive in a shorter time frame.
It's better for all concerned but it's gonna require concentrated focus by everyone and a determination that this is something that's worth -- -- -- -- resolution you mean money.
Look right -- created financial exposure for themselves they're going to be fine and sanctioned by many courts across the country for what they have done.
It's going to cost the money whether the attorneys general exist or not they need to recognize that and see if they can.
Put this into a more constructive framework so that they not only result the problem with the courts.
But they also potentially result of problems with the homeowners and they don't continue to carry on their books all these properties that you've been subject to for closure.
Every one of those for -- orders might also carry with the the sanction order they submitted.
Fraudulent affidavits in this cases.
It's a big problem and apparently it's not assert attorney general sorry about it's a problem they only -- about and why is are we talking billions of dollars worth of settlement.
Look I think if we don't have a settlement.
We're talking about fine after fine after fine in tens of thousands maybe hundreds of thousands of cases that will add up on it sound.
You were talking about years that this dragging out with some courts perhaps even the folding them their cases others doing different things courts will be all over the map on this.
That's not a very happy situation for anyone concerned again the attorneys general didn't create this.
The big servicers the big banks -- for themselves.
Now they need to figure out how best to clean it up and we're trying to assist them and seeing what their long term self interest.
I doubt -- they think a bit of what you're doing is assisting them but I I appreciate your coming on.
And will be -- to see how it works out thanks so much for your time we really appreciate it.
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