It turns out the bankers continue to this day fabricating loan documents and using robo-signers in foreclosures, despite promise to improve their operations and bring foreclosures into legal compliance.
Several dozen documents reviewed by American Banker show that as recently as August some of the largest U.S. banks, including Bank of America Corp., Wells Fargo & Co., Ally Financial Inc., and OneWest Financial Inc., were essentially backdating paperwork necessary to support their right to foreclose.
Some of documents reviewed by American Banker included signatures by current bank employees claiming to represent lenders that no longer exist.
Many banks are missing the original papers from when they securitized the mortgages, in some cases as long ago as 2005 and 2006, according to plaintiffs’ lawyers. They and some industry members say the related mortgage assignments, showing transfers from one lender to another, should have been completed and filed with document custodians at the time of transfer.
“It’s one thing to not have the documents you’re supposed to have even though you told investors and the SEC you had them,” says Lynn E. Szymoniak, a plaintiff’s lawyer in West Palm Beach, Fla. “But they’re making up new documents.”
Why aren’t bankers going to jail over this, or at least being held in civil contempt for filing falsified documents in court?
(via The Big Picture)
- Mortgage servicers still lying in court (blogs.reuters.com)
- Report: U.S. to sue big banks over mortgages (cbsnews.com)
- JPMorgan, BofA take heat for foreclosure program (seattletimes.nwsource.com)