The Law Offices of Marshall C. Watson, P.A. in Fort Lauderdale agreed to a $2 million payment and operating restrictions in a settlement of an investigation by the Florida Attorney General’s Office.
This is the first of the three Florida foreclosure law firms that were part of the initial probe started in August 2010.
The state attorney started the investigation after receiving consumer complaints about false filings in foreclosure lawsuits handled by the firm. That included allegations of false affidavits and missing loan documents.
In the “assurance of voluntary compliance” Watson signed on behalf of his law firm, he did not admit any violations of law. However, the Florida Attorney General’s Office did not say what its investigation found.
Watson’s law firm agreed that all of its foreclosure lawsuits going forward would include the original note or a lost note affidavit, the original mortgage or a copy of the recording mortgage, and documents showing that the loan is in default. In addition, the file must contain documentation showing that the plaintiff in the lawsuit is the current holder of the loan.
For foreclosure lawsuits that it previously filed, the law firm must meet those conditions before it seeks entry of a final judgment.
Watson agreed not to include “John or Jane Doe” or “unknown spouse” as defendants in foreclosure lawsuits unless there is evidence pointing to tenants or a spouse.
As for the fine, it was divided into a $1 million payment to the Florida Attorney General’s Office’s legal affairs department and a $1 million “donation” to the Florida Bar Foundation
to fund a mortgage foreclosure assistance program.
The document made it clear that the payment was not a fine or a penalty.
“We are aggressively investigating these law firms in order to protect the interests of everyone involved in foreclosure proceedings,” Florida Attorney General Pam Bondi said in a news release. “Homeowners, lending institutions and the courts deserve to know that the law is being followed and all documentation is true and accurate. Anything short of total assurance of complete accuracy during such serious situations is unacceptable.”
In a statement to the media, Watson said: “Our firm is pleased the attorney general’s investigation has been resolved without any findings. Throughout the investigation, we worked closely with the attorney general’s office to develop best practices and procedures to implement at our firm. With our firm’s tight controls now in place we are setting a high bar for the mortgage law provider industry, and our clients recognize and value the positive steps we are taking.”