Connecticut AG Richard Blumenthal has asked Fannie Mae and Freddie Mac (along with other organizations) why only a couple of law firms in Connecticut are handling foreclosures. In a June 4th letter to the companies that were suspect, Mr. Blumenthal had reason to believe that consumers were being charged excessive fees on foreclosure actions and that marshals were being charged extensively in connection to the foreclosures.
In a statement Blumenthal said:
“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..A scarce few are spinning foreclosures into fortunes, and perhaps deepening homeowner despair.”
This is a story we will be hearing about in other states as well. When one or two firms control huge portions of an industry that is called competition, wait, it is called oligopoly…not the best thing in these trying times.
For more on the story…click here.