Iowa AG Miller to meet with consumer groups on robo-signing settlement

Residents and consumer groups will meet with Iowa Attorney General Tom Miller Tuesday to push for a national settlement in the robo-signing investigation. Miller is leading the 50-state AG investigation into major lenders such Wells Fargo (WFC), Bank of America (BAC), Ally Financial (GJM) and JPMorgan Chase (JPM) for signing foreclosure affidavits without reviewing documentation or having previous knowledge of a specific case. Miller believes a strong settlement would require banks to complete substantially more loan modifications, offer borrowers a principal reduction before allowing a foreclosure proceeding and include remedial action for foreclosed homeowners who have already lost their residence. At a first meeting, Miller said he supports criminal prosecutions for banking executives as a possible outcome from a partnership between his office, and the U.S. Attorney for the Southern District of Iowa. A spokesman for Miller’s office told HousingWire that the multistate investigation is a civil one. This will be the second meeting with consumer groups, such Iowa Citizens for Community Improvement, on this issue. The Iowa CCI has more than 250 members. The meeting will be held Tuesday Jan. 25 at the Wallace Building on E. 9^th Street in Des Moines. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR. Disclosure: The author holds no relevant investments.