– New Jersey is among 49 states that
today announced they have begun a coordinated
multistate effort to investigate whether
mortgage servicers committed consumer fraud
by not properly reviewing, verifying and
signing foreclosure documents filed with
New Jersey, foreclosure actions must be
supported by an Affidavit of Amount Due,
which establishes the identity of the mortgage/note
holder and information concerning the default.
Recent reports suggest that mortgage servicers
are having employees sign these affidavits
without confirming their accuracy.
is not a gray area. Either our legal requirements
for filing foreclosures were followed or
they weren’t, and we will hold the
companies accountable for their systematic
violations,” Attorney General Paula
T. Dow said.
Financial, formerly known as GMAC Mortgage,
announced last month that it was imposing
a moratorium on foreclosures in 23 states,
including New Jersey, after disclosing that
its employees routinely signed off on foreclosure
affidavits without properly reviewing them
or verifying their accuracy. JP Mortgage
Chase and Bank of America have since announced
similar halts to foreclosure proceedings.
have to know the facts before you can attest
to them, and that requires review,”
said Thomas R. Calcagni, Acting Director
of the New Jersey Division of Consumer Affairs.
“Servicers must scrupulously follow
the law when they file foreclosures and
that includes only submitting affidavits
on personal knowledge. Nothing less will
do when New Jersey residents are facing
the loss of their homes.”
Division of Law is working with the Division
of Consumer Affairs on this matter.