The 50 state attorneys general investigating the robo-signing debacle are looking at issues regarding the accuracy of information used by servicers in the foreclosure process as well as the imposition of fees and force-placed insurance, according to Iowa AG Tom Miller.
"The multi-state group is also interested in some of the issues that are being raised regarding the ability or inability of servicers and investors to show proper chain of title," Miller told the Senate Banking Committee on Tuesday afternoon.
The Iowa AG stressed in his testimony that servicing systems were not originally designed to handle loan modifications and it has led to a wide range of problems.
Getting a loan modification is like playing "Russian Roulette," he testified, and only the lucky and most persistent borrowers receive quality modifications.
The state AGs want to change that by ensuring all borrowers who pass a "strict economic analysis" can qualify.
"We must find a way to make sure that all borrowers who have the desire to keep the home and qualify for a modification receive that modification," Miller said.
