He said he thought the national settlement overreached the power of state attorneys general. Also, he said it inappropriately benefited homeowners who stopped making house payments over those who kept paying even though they owned more than their houses were worth after the national housing market crash.
“We had concerns that what started as an effort to correct specific practices harmful to consumers morphed into an attempt by President Barack Obama to establish an overarching regulatory scheme, which Congress had previously rejected, to fundamentally restructure the mortgage industry in the United States,” Pruitt said. It started “being co-opted by Washington to turn into something to fix the housing market. That's not the role of the attorney
He also complained that the national settlement did not include Fannie Mae or Freddie Mac and that it could have negative consequences for community banks.
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The attorney general's Public Protect Unit will process applications for damages. To file a complaint, call 521-2029, send an email to Public