Saturday, October 30, 2010

MAJOR NEWS: Foreclosure Crisis: Banks Told Not to Just 'Fix' Foreclosure Fraud -

Foreclosure Crisis: Banks Told Not to Just 'Fix' Foreclosure Fraud - "'It is not acceptable for a party who believes they submitted false court documents to merely replace those documents. Wells Fargo and any other banks are not simply allowed a 'do-over,'' he wrote in the letter to Wells. The other letter was sent to Ohio judges, who were asked to notify Mr. Cordray when banks file substitute affidavits.

He demanded that the banks vacate any court order or motion that was based on an improper paperwork. In an interview Friday, Mr. Cordray said the banks would 'be well-served to work out a settlement with the borrowers to modify the loans and work out payments.'

Mr. Cordray's letters come as several banks say they have reviewed their foreclosure procedures and are resuming evictions. But his insistence that they go beyond replacing affidavits by employees who have been labeled 'robo-signers'—who didn't adequately review underlying foreclosure documentation—threatens to upend banks' efforts to resolve their foreclosure problems.

Mr. Cordray's strategy provide clues as to the goals of a 50-state probe, which was announced two weeks ago. Led by Iowa Attorney General Tom Miller, the effort was joined by top law-enforcement officers from all 50 states in response to reports of widespread errors in foreclosure filings and allegations of robo-signing."

Read the full article on WSJ by clicking title link above.

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