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FIS Fisker Inc

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Fisker Inc TG:FIS Tradegate Ordinary Share
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Conn AG Seeks Information On Law Firms Used For Foreclosures

08/06/2009 7:43pm

Dow Jones News


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Connecticut's attorney general has asked mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) and banking technology company Fidelity National Information Services Inc. (FIS) to provide information on how they select law firms for foreclosure services.

In a statement Monday, Connecticut Attorney General Richard Blumenthal said his office is probing complaints that the majority of the state's foreclosures are assigned to a select group of law firms and complaints from consumers that they didn't receive proper foreclosure notices from marshals.

"Dominance over foreclosure service by a few select law firms and marshals has spurred complaints about improper or illegal practices - wrongfully allocating work to non-marshals, forging papers, failing to serve papers, and making kickbacks," Blumenthal said in a statement. "Concentrating this work in a few hands can be severely problematic - causing unconscionable costs and failed notice delivery."

In separate letters to Fannie Mae, Freddie Mac and Fidelity National, Blumenthal said he is seeking the identity of all Connecticut law firms employed for foreclosure actions from 2007 to the present, details on the criteria used in selecting those firms, information on fees paid to those law firms and any fees paid by the law firms to the lenders and any complaints by Connecticut consumers regarding failures to provide proper notice.

Spokespersons from Freddie Mac, Fannie Mae and Fidelity National didn't immediately return phone calls seeking comment Monday.

-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com

 
 

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