It's virtually impossible for some marshals to make the kind of money they do, in some cases a million dollars or more, yet they are, Attorney General Richard Blumenthal said and he is looking into this.
Blumenthal is investigating the foreclosure business in Connecticut, and he has asked mortgage giants Freddie Mac, Fannie Mae and Lender Processing Services for information about how they select law firms in foreclosure proceedings.
At the same time, he said, a few select law firms and marshals dominate in foreclosure services and that has spurred complaints about improper and illegal practices, including wrongfully allocating work to non-marshals, forging papers, failing to service papers and making kickbacks.
Blumenthal has been looking into the complaints for more than a month. There is the potential that a select group of law firms and marshals is spinning foreclosures into fortunes on the backs of homeowners and driving them into deeper economic despair, he said.
It was reported last week that one state marshal took in about $3.3 millions worth of business, essentially getting most of it from one law firm.
Marshals have historically refused to comment on their income. Monday they refused to comment about Blumenthal’s investigation.