BofA Foreclosure Unit Must Heed Rules to Return: State AG
Bank of America Corp.’s ReconTrust Co. unit, sued by Washington state for failing to comply with laws on foreclosure trustees, can’t do business there until it meets state criteria, Attorney General Rob McKenna said.
ReconTrust, a provider of foreclosure services, failed to operate as a neutral third-party as required by Washington law, McKenna alleged in a lawsuit filed a year ago.
The business failed to maintain offices in the state, its foreclosure notices didn’t identify loan owners, and the notices provided contradictory information about what borrowers needed to do to stop the proceedings, McKenna said today in a statement announcing a settlement of the case.
“ReconTrust is no longer doing business in Washington state,” the attorney general said. “It may only resume foreclosures here if it satisfies a long list of conditions imposed to protect borrowers.”
It previously paid almost $1.1 million to McKenna’s office as part of Bank of America’s participation in a $25 billion five-bank national mortgage litigation settlement earlier this year.
“The consent decree simply formalizes the resolution of an issue that was settled as part of the multi-state settlement reached earlier this year,” Bank of America said in an e-mailed statement. The Charlotte, North Carolina-based lender said it admitted no wrongdoing in its accord with the state.
“At this time, ReconTrust is not acting as a foreclosure trustee in Washington,” the bank said.
The case is Washington v. ReconTrust Co., 11-26867-5, Superior Court, King County, Washington (Seattle).
To contact the reporter on this story: Andrew Harris in Chicago at email@example.com