The state Department of Justice plans to use up to $3 million of the $31.6 million given directly to the state of Wisconsin under the $25 billion multi-state mortgage settlement to identify, investigate and prosecute mortgage and other financial fraud, executive assistant Steve Means said.
Means said Attorney General J.B. Van Hollen wants to use the money to build expertise within his office and to train local law enforcement and prosecutors to investigate and prosecute such fraud.
Over the past three years, Wisconsin homeowners have filed 632 complaints with the state Department of Financial Institutions against mortgage companies and brokers. The complaints allege misrepresentation, misapplication of payments, excessive or unfair fees, failure to modify loans and other problems.
DFI found violations in just 72 cases involving state-chartered institutions, which are mostly smaller mortgage outfits. Nearly 90 percent of complaints were closed after a finding of no violation, inadequate basis for action, or other reasons. Fifty-six were referred to other federal or state agencies, according to figures provided by DFI.
(c)2012 The Wisconsin State Journal (Madison, Wis.)
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