Wednesday, March 11, 2009

Banking Industry Advocates Pushing Proposed Bill That Could Encourage More Home Equity Thefts Thru Forged POAs

A hearing in the Oregon House Judiciary Committee is scheduled for this Friday, March 13 in which advocates for the banking industry might be quietly attempting to get away with a fast one by forcing through a proposed bill, based on a model uniform act (Uniform Power of Attorney Act), that could lead to an increase in home equity heists in connection with the use (and abuse) of powers of attorney.

Based on how the proposed law reads, it appears to me that victims whose houses are sold or encumbered by fraudulent mortgages using a forged power of attorney will NOT be able to void the transaction unless they can prove that the individual handling the transaction had actual knowledge that the POA was forged.

The relevant provision in the bill, buried in Section 19(3), follows:

  • (3) A person that in good faith accepts a power of attorney without actual knowledge that the signature is not genuine, that the power of attorney is void, invalid or terminated, that the purported agent's authority is void, invalid or terminated or that the agent is exceeding or improperly exercising the agent's authority may rely upon the power of attorney as if the power of attorney were genuine, valid and still in effect, the agent's authority were genuine, valid and still in effect and the agent had not exceeded and had properly exercised the authority. The person is not required to ensure that the assets of the principal that are paid or delivered to the agent are properly applied.

This bill is HB2537; you can obtain a copy via this link.

Inasmuch as the proposed bill is based on a model uniform act, a successful attempt to sneak this legislation through the Oregon legislature by the banking industry will only encourage industry advocates in other states to do the same.

Those of you with any interest in curbing the home equity theft horror stories are encouraged to contact the Oregon House Judiciary Committee and tell them how you feel (Jennifer Ranstrom-Smith, Committee Assistant, 503-986-1513 Jennifer.RanstromSmith@state.or.us). (You might even want to e-mail them the following links that illustrate the rampant nature of deed and equity thefts throughout the country).

Go here for posts on the use of powers of attorney to ripoff the elderly of their home equity.

Go here, Go here, Go here, Go here, Go here, and Go here for other posts related to deed or refinancing scams by forgery, swindle, power of attorney abuse, etc. DeedGammaTheft FinancialAbuseOfElderlyAlpha

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