Department of Justice recognizes key role of Colorado U.S. Attorney's Office in national mortgage servicing settlement
This morning, Attorney General Eric Holder announced that the federal government and many state attorneys general have reached a $25 billion national agreement settlement with the five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The United States Attorney’s Office for the District of Colorado played a substantial role in this effort, working closely with the Department of Justice in Washington, DC, and the Colorado Attorney General’s Office under Attorney General John Suthers.
As noted by the Department, since 2010, the U.S. Attorney’s Office for the District of Colorado has pursued investigations of two major servicers regarding their compliance with their obligations to borrowers for mortgage loans insured by the FHA. A team of attorneys and investigators, working with HUD-OIG in Denver, obtained and reviewed more than 90,000 pages of documents concerning scores of foreclosed properties in Colorado, comparing FHA loss mitigation rules with records obtained by subpoena from the servicers, as well as records provided by homeowners. Partnering with Colorado State Attorney General’s Office, the team interviewed numerous individuals, including homeowners who faced foreclosure and individuals who already had been foreclosed upon and evicted.
A team of experienced civil Assistant U.S. Attorneys in the Colorado U.S. Attorney’s Office also supported and assisted the Department in the negotiation of the Mortgage Servicing Settlement, including in the final discussions late into the night last night.