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VHFA diligent during foreclosure procedures

Posted by: VHFA on 10/18/2010

Last week, Vermont joined other states in examining complaints some mortgage firms have engaged in questionable practices during foreclosure proceedings.

At the center of the investigation is "robo-signing," when mortgage service employees with no knowledge of a particular case sign foreclosure documents.

Thomas Candon, Banking Commissioner at the Vermont Department of Banking, Insurance, Securities and Health Care Administration and a VHFA Commissioner, said his office hasn't received any complaints regarding this practice.

He added some companies under investigation are active in Vermont.

"Some large servicers allegedly provided notarized statements to courts that weren't based on actual documents in their possession or based on information verified by the individual who signed the documents," according to Director of Homeownership Programs Pat Crady.

"VHFA provides to the courts only affidavits based on actual documents we have in our possession and information verified by VHFA. The individual at VHFA who signs these documents assures we have the originals in our possession and documentation to support any statements before making any representations in court, which is the only way it should be done."

Earlier this week, VHFA released recent data that show its rates of home loan delinquencies and foreclosures are substantially lower that the state and national rates.

Read more: "VHFA home loan delinquencies, foreclosures low" (Oct. 13, 2010).