12-21-2010, 05:19 AM
Read the Nevada AG's lawsuit and find out if Hawaii had any of those items in its laws. If so, the Hawaii AG may be able to sue. Although they are both over modifications they are for different reasons. Nevada's is based on consumer fraud laws and Arizona’s based on violations of a past settlement agreement between Countrywide and the State.
AG's often will confer with other State AG's on these matters to ensure that it's in the best interest of the consumer. One big concern is federal laws only require loan modifications if the loan is owned by Freddie Mac or Fannie Mae. They don’t have to modify any other loan if they don’t want to. If too many AG's start suing, there is a fear that banks may stop all non required modifications. So they often may decide to pick one or two suits that would prompt changes that positively impact all consumers nationwide without pushing the offender in a position of stopping all non required actions to avoid more lawsuits.
AG's often will confer with other State AG's on these matters to ensure that it's in the best interest of the consumer. One big concern is federal laws only require loan modifications if the loan is owned by Freddie Mac or Fannie Mae. They don’t have to modify any other loan if they don’t want to. If too many AG's start suing, there is a fear that banks may stop all non required modifications. So they often may decide to pick one or two suits that would prompt changes that positively impact all consumers nationwide without pushing the offender in a position of stopping all non required actions to avoid more lawsuits.