Washington State Supreme Court Says Trustee Not Simply Agent For Lender

WA Supreme Court rules against Trustees

The Washington State Supreme Court ruled on February 28th in the case of Klem v. Washington Mutual, that Quality Loan Service violated the state consumer-protection law by falsely notarizing legal documents and not considering requests to delay the auction of residential property. The court overturned an appeals court’s decision.

Quality Loan Service was taken to task for notary practices, as well as its failure to exercise the trustee’s asserted independent “duty of due care” with regard to continuing the sale.  Foreclosure trustees are not simply agents for the lender, the court wrote.

Read the case

Read story in The Seattle Times