Wednesday, October 13, 2010

All 50 States Start Inquiry Into Foreclosures | Financial News

All 50 States Start Inquiry Into Foreclosures | Financial News:
"The officials are investigating accusations that some banks used shoddy paperwork to kick evict borrowers out of their homes during a foreclosure crisis that is one of the most visible wounds of the economic downturn.

“We are in the fourth year of a housing and economic crisis that was brought on by lax practices of the mortgage lending industry,” the Minnesota attorney general Lori Swanson said in a statement. “The latest allegations of corner cutting and slipshod paperwork are troubling, but perhaps not surprising.”

The attorneys general will be looking at the practice by banks and companies that collect monthly mortgage payments of using “robo-signers” — people who sign hundreds of affidavits a day.

The use of robo-signers “may constitute a deceptive act and/or an unfair practice or otherwise violate state laws,” the attorneys general said, because the signers did not properly review the documents."

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