Loan Modification

Investigation of Foreclosure Law Firms Continues

By Eugene S. Melchionne, Connecticut Consumer Attorne

Connecticut’s Attorney General, Richard Blumenthal, is continuing to press his investigation of three law firms who appear to file more than 90% of all the foreclosures in the state.  Together, the law firms file more than 2,000 foreclosures per month in Connecticut. Last year, the Hartford Courant reported that one state marhsall who served papers for the firms grossed nearly 3 million dollars in fees last year just from their foreclosure cases.

Mr. Blumenthal issued written requests to Freddie Mac, Fannie Mac and Lender Processing Services looking for information on the criteria and terms under which the law firms were chosen to represent over 1000 lenders in foreclosure cases.  The Attorney General is also looking for an itemized accounting of all fees earned by the firms and copies of all retinaer agreements specifying fee schedules.

Two of the law firms, Hunt, Liebert and Bendett & McHugh are the only Connecticut members of the U.S. Foreclosure Network, a national association of firms specializing in foreclosures.

Full post as published by Mortgage Law Network on June 09, 2009 (boomark / email).