Policy: Law

Washington AG reaches agreement with foreclosure trustee

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Washington,Law,Legal Newsline,Foreclosure
Ferguson

Ferguson

SEATTLE (Legal Newsline) – Washington Attorney General Bob Ferguson announced a consent decree on Friday with a foreclosure trustee to resolve allegations of unfair and deceptive business practices.

Quality Loans Service Corp. of Washington allegedly failed to inform borrowers who were in the foreclosure process that it closed its Poulsbo office in January and moved to an office in Seattle. Some borrowers were allegedly unable to gain entry to QLS’s new office because it was in a locked, poorly marked office building.

Ferguson’s office alleged QLS violated the Consumer Protection Act. The office filed a motion on February 26 to obtain a temporary restraining order against QLS to stop impending foreclosures. QLS entered into an interim agreed order that resulted in the consent decree.

“Foreclosure trustees have a duty to treat borrowers fairly under the law,” Ferguson said. “I will make sure that all parties involved in the foreclosure process, including trustees like QLS, play by the rules.”

Under the terms of the agreement, QLS will pay $250,000 to foreclosed homeowners who were foreclosed upon between January 1 and February 27, place a moratorium on all QLS foreclosures between February 27 and April 3 and cancel and restart the foreclosure process for approximately two dozen households. QLS will also maintain a physical presence in Washington, ensure homeowners can access its Seattle office and pay $25,000 to cover attorney fees.

Original Story: Wash. AG reaches agreement with foreclosure trustee

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