Foreclosure Fraud: First Criminal Charges Filed In Nevada Over Robo-Signing
The Nevada attorney general has indicted two midlevel staffers at a mortgage document company, Lender Processing Services, on a whopping 606 counts of felony and gross misdemeanor for directing employees to forge signatures and falsely notarize documents used to illegally foreclose on Nevada homeowners.
Nevada's is the first criminal indictment since last year's discovery of the nationwide "robo-signing" scandal, in which mortgage servicing companies and banks were processing foreclosures en masse at lightning speed by signing documents they neglected to review and falsifying information.
This has been going on all over the nation, thousands of times per day, and this is the first time anybody has been charged with a crime. Absolutely unbelievable. I know somebody is going to comment that the defrauding of HOA/condo residents is infinitely worse, but it isn't. You have to get some sense of proportion here. The scope of mortgage foreclosure fraud is on a different order of magnitude. Millions of people--not hundreds, or thousands--millions of people have been tossed out on the street over the last three few years, and the evidence shows that an enormous percentage of these cases involved perjured affidavits, nonexistent original notes, and kangaroo "rocket docket" courts. There are millions more foreclosures waiting to be filed.
And this comes after the subprime mortgage racket that produced all the toxic mortgage backed securities that wrecked the financial sector, crashed the economy, and tanked housing prices for a decade. And then there is the mortgage rescue fraud racket, run by some of the same crooks who used to run the subprime racket.