Washington State cracks down on foreclosure trustee

by MPA01 Apr 2014
About 450 Washington State homeowners will be receiving cash after the state attorney general’s legal action against a foreclosure trustee.

Washington Attorney General Bob Ferguson placed a moratorium on foreclosures by Quality Loan Service Corp. over allegations that the company violated the Deed of Trust Act. The act requires that a foreclosure trustee maintain a street address with a physical presence and active telephone service, according to the AG’s office. The law ensures that borrowers have a place to go if they have questions or need to make payments, request a postponement of a foreclosure or serve a lawsuit to halt the foreclosure.

According to the AG’s office, QSL closed its office in Poulsbo, Wash., in January and moved to an office in Seattle without informing borrowers in the foreclosure process. The AG’s office also alleged that some borrowers couldn’t gain entry to the new office, which was in a locked, poorly marked building. Ferguson argued that QSL’s failure to inform borrowers of the move and the inaccessibility of the new office constituted unfair and deceptive business practices.

“Foreclosure trustees have a duty to treat borrowers fairly under the law,” Ferguson said. “I will make sure that all parties involved in the foreclosure process, including trustees like QLS, play by the rules.”

As a result of the legal action, QSL will have to pay $250,000 to homeowners it foreclosed upon between Jan. 1 and Feb. 27, cancel and restart the foreclosure process for about two dozen homeowners, agree to maintain a physical presence in Washington State, and pay $25,000 to the AG’s office, among other penalties.
 

COMMENTS

Poll

Is TILA-RESPA a good or bad thing long term?