In April, fourteen of the nation’s biggest banks promised federal regulators they would stop robo-signing documents to foreclose on homes. This was part of a settlement to clean up the foreclosure mess caused by wild lending of the banks.
Nearly 8 months ago, the banks were caught red handed fraudulently creating fake documents because they lost track of the originals in the haze of creating mortgaged-backed securities. Why is this still going on? More importantly, why aren’t bank executives going to jail instead of letting them off the hook? Many have called this outright organized crime!!! The implications of this, to me, say the mortgage industry and bankers are panicked and desperate. It also signals the real estate market will not recover for many years.
The story that follows is a must read from the Associated Press:
“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.