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Tuesday, March 05, 2013
Foreclosure robosigning violated Washington Consumer Protection Act
Further, the court suggested in a footnote, absent strong protections for borrowers, the nonjudicial foreclosure act could run afoul of the state constitutional prohibition on deprivation of property without due process of law, which might protect against more than the federal 14th Amendment; other self-help statutes for creditors are subject to constitutional limits. Another footnote noted that, if the trustee was a mere agent of the beneficiary, the beneficiary might also be liable for the trustee’s acts, though WaMu was in receivership and not a party to this particular lawsuit.