Foreclosure fraud bill advances

A bill to expand the investigative powers of the attorney general and district attorneys to cover foreclosure documentation fraud on Tuesday cleared an important state Senate panel.

The Senate Judiciary Committee approved House Bill 237, the centerpiece of new Attorney General Sam Olens’ legislative package, by a vote of 8-2. It now moves to the Senate Rules Committee for scheduling on the full chamber’s calendar. The House passed the bill March 2.

The bill would criminalize falsifying foreclosure documents, not simple typos. Senior Assistant Attorney General David McLaughlin said his office has seen instances of back dated foreclosure documents, apparently forged notary signatures and other abuses.

The bill also would give the attorney general and district attorneys subpoena power. The bill, if passed, would go into effect July 1, and would not be retroactive.

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