Attorney General Scott Pruitt said that his office had received 86 complaints about foreclosure and loan servicing practices since October 2010 when the National Association of Attorneys General formed a bipartisan and multi-state group to address issues related to the mortgage crisis. Which, eventually involved federal agencies that included the Justice Department, Department of Housing and Urban Development, the Treasury and Federal Trade Commission and the Consumer Financial Protection Bureau.
A settlement was agreed with 5 national lenders with 49 other states. Differences over philosophy of government kept Oklahoma out of the mortgage settlement. But, the state still will be awarded 18.6 million in damages for borrowers seeking relief from unfair or lawful mortgage servicing practices. The state will receive the same amount in compensatory damages, for violations of state law, as it has signed onto the national agreement Pruitt said.
“Oklahoma is fortunate to have a stronger housing market and economy than many other states that are struggling. This settlement will provide damages to Oklahomans who did fall victim to unfair and unlawful misconduct of mortgage servicing companies.” Says Pruitt.
Pruitts concern with the national settlement negotiation began last March when the scope of the investigation went beyond fraud and illegal practices to require loan modifications, principle reductions and a fine up to $25 billion. He thought the national settlement over reached the power of state attorneys general.