Sept. 27, 2007 -- In an effort to confront the growing problem of home foreclosures in Kansas, Attorney General Paul Morrison announced the creation of a task force to address the reasons behind home foreclosures, including mortgage fraud and subprime lending.
“Nationwide there is a storm brewing in the world of home mortgages. We may only be seeing the tip of the iceberg when it comes to increased home foreclosures,” Morrison said. “I believe that mortgage fraud and subprime lending are significant reasons for this increase and I have formed a task force to investigate the problem further.”
The goal of the task force will be to investigate the causes of the increasing number of home foreclosures in Kansas and develop recommendations on how to stem the tide. Morrison asked Bank Commissioner Tom Thull to chair the new task force, which will consist of representatives from the lending and real estate industries as well as consumer advocates.
“Home foreclosures occur for a variety of reasons, but as Attorney General, it is my duty to make sure that Kansas families are treated fairly in the home buying process,” Morrison said. “I will rely on the expertise of Chairman Thull and the task force to develop substantive recommendations to address the number of foreclosures in this state.”
“Changes in the marketplace have led to the development of non-traditional mortgage products, some with negative consequences for consumers,” Thull said. “This taskforce will assess all aspects of non-traditional mortgage products currently available and develop recommendations to safeguard Kansas consumers.”
The task force will meet later this fall.