Monday, July 18, 2011

AP Exclusive: Mortgage 'robo-signing' goes on

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.
Last Halloween's robosigning Frankenstein monster is rising from the dead as the heavily CDO'd and otherwise secondary market derived residential mortgage market fallout from the 2000's continues.

It's probable just one robosigner for a single large lender wreaked more devastation and destroyed property values in Privatopia than any amount of unapproved paint colors, solar panels, antennas, clotheslines, flags flapping from poles or pot bellied pigs could ever do.

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