Maine joins nation in foreclosure probe
Maine has joined the other 49 states in launching an investigation into allegations of foreclosure mismanagement by mortgage companies.
Maine Attorney General Janet Mills yesterday told the Maine Public Broadcasting Network her office is following suit to determine how many foreclosures proceedings in Maine have been affected by so-called "robo-signing," allegations that employees at mortgage companies signed documents without reading them or prepared them improperly. It's estimated that more than a quarter of a million mortgages in Maine are held by out-of-state lenders and could be affected by mismanagement, according to MPBN. Mills said she hopes to convince some mortgage holders to do more to negotiate terms with homeowners in lieu of foreclosure. In January, Maine became one of only a few states to launch a foreclosure mediation program.
As robo-signing allegations came to light, some of the nation's biggest mortgage companies and lenders, including Bank of America and GMAC, have halted foreclosure proceedings to examine their processes, which some analysts say could impede the housing market's recovery, according to The Associated Press. Compared to the nation, Maine's number of foreclosures is relatively small. In the second quarter of 2010, the number of loans in foreclosure in Maine was 0.35%, or one loan for every 287 mortgages, based on mortgage loan data from the 32 state-chartered financial institutions regulated by the Bureau of Financial Institutions.
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