July 19, 2011 in Business

Mortgage ‘robo-signing’ continues

 

Mortgage industry employees are still signing documents they haven’t read and using fake signatures more than eight months after big banks and mortgage companies promised to stop the illegal practices that led to a nationwide halt of home foreclosures.

County officials in at least three states say they have received thousands of mortgage documents with questionable signatures since last fall, suggesting that the practices, known collectively as “robo-signing,” remain widespread in the industry.

The documents have come from several companies that process mortgage paperwork, and have been filed on behalf of several major banks. One name, “Linda Green,” was signed almost two dozen different ways.

Lenders say they are working with regulators to fix the problem but cannot explain why it has persisted.

Last fall, the nation’s largest banks and mortgage lenders, including JPMorgan Chase, Wells Fargo, Bank of America and an arm of Goldman Sachs, suspended foreclosures while they investigated how corners were cut to keep pace with the crush of foreclosure paperwork.

Critics say the new findings point to a systemic problem with the paperwork involved in home mortgages and titles. And they say it shows that banks and mortgage processors haven’t acted aggressively enough to put an end to widespread document fraud in the mortgage industry.

“Robo-signing is not even close to over,” says Curtis Hertel, the recorder of deeds in Ingham County, Mich., which includes Lansing. “It’s still an epidemic.”

The 14 biggest U.S. banks reached a settlement with federal regulators in April in which they promised to clean up their mistakes and pay restitution to homeowners who had been wrongly foreclosed upon.

Recent stories in Business
One comment on this story so far. Add yours!

  • drywitt99 on July 19 at 4:12 a.m.

    “Lenders say they are working with regulators to fix the problem but cannot explain why it has persisted.”

    Allow me to hazard an explanation.

    Because bankers (the ones in corporate board rooms, not the local banch with the drive through window) are greedy, corrupt bastards…..who either encourage such behavior….or turn a blind eye to it until they get caught.

    They use political influence…..read that bribes……to both political parties…..to reduce regulation so that they won’t get caught……and to bail themselves out after they do.

    And rather than make sensible and reasonable loans to get business going again…….they sit on most of the money……pay themselves ungodly bonuses……and keep on making the questionable loans which started this whole thing in the first place.

    Of course…..I’m only guessing?????

You must be logged in to post comments.
Please create a profile or log in here.