Contact Bob Brammer – 515-281-6699

Iowa Attorney General’s Office
Recent Activity Regarding Mortgage Foreclosures
and Important Information for Consumers

September 20, 2007:  “Consumer Advisory” bulletin on “Foreclosure Hotline”   

September 11, 2007:  A.G. Miller announces new Iowa “Foreclosure Hotline” – 877-622-4866.  Attorney General Tom Miller unveiled a project Sept. 11 aimed at avoiding a flood of subprime mortgage foreclosures in Iowa.  The pilot project will work to help borrowers and lenders modify loan terms so that borrowers can make payments – and keep their homes – and lenders can do much better financially than if they foreclosed on a mortgage.           Miller urged Iowans facing a mortgage foreclosure to call 877-622-4866 (toll-free) to reach the Iowa Mediation Service. Iowa Mediation Service will take information from borrowers and then explore if a loan modification might work for both the borrower and lender. [Click on link above for complete news release.]

September 2007 [updated October 2007]:   “Overview of the Subprime Foreclosure Crisis” – a policy analysis by Patrick Madigan, Iowa Asst. Attorney General.   Madigan was one of the leaders of the multi-state litigation that resulted in a $325 million settlement with Ameriquest Mortgage Company.  In this policy analysis of the subprime foreclosure crisis, Madigan discusses:  “How did we get here?” (current foreclosure rates are the proverbial tip of the iceberg; subprime lending is not about increasing home ownership; the advent of securitization has dramatically changed the mortgage market), and “How to respond to the national foreclosure crisis” (economics of foreclosure; securitization is preventing some modifications; servicer impediments to modifications; and solutions to the problem.)

August 22, 2007: See Des Moines Register, “Miller works on foreclosure mediation plan,” by S.P. Dinnen, Register Business Writer.

“Iowa Attorney General Tom Miller is crafting a plan to bring home buyers and lenders together to discuss ways they can make loan repayments more affordable. . . .”

Note to borrowers who are facing foreclosure or falling behind in payments: You are encouraged to contact the Attorney General’s Consumer Protection Division – 515-281-5926, or 888-777-4590 (toll-free.) The Office is especially interested in hearing from consumers who may be victims of consumer fraud or inappropriate activity by lenders or mortgage brokers, such as appraisal fraud, bait-and-switch tactics, or misrepresentations.

The Register story also mentioned Iowa activity on the national level: “Miller jumped into the foreclosure fray last month when he convened a meeting in Chicago of attorneys general from nearly 40 states. Some of those officials will return to Chicago, perhaps as early as September, to work on a plan to rescue loans rather than let them go to default.”

August 22, 2007: See Des Moines Register, “Foreclosure wave hits Iowa hard,” by Donnelle Eller and S.P. Dinnen, Register Business Writers. “Iowa has the ninth-highest rate of home foreclosures in the nation. . . .” The story discusses the reasons for high foreclosure rates in Iowa, how adjustable rates “burned homeowners,” how inflated appraisals cost borrowers, etc. The story includes instructive charts and graphs.

August 14, 2007: Comments to the Federal Reserve Board of Governors on Adopting Regulations to Prohibit Unfair and Deceptive Acts and Practices under the Home Ownership and Equity Protection Act (HOEPA).