Another day, another business hit over the head with a multi-million settlement over faulty foreclosure practices. We’ve already seen big retail banks and heavy-hitting investment banks pay the price for robo-signing foreclosures and engaging in other suspect loan servicing activities and now Florida-based business Lender Processing Services will be paying $120 million to 46 states to settle similar allegations. [More]
Last summer, GMAC was looking to foreclose on a property here in Brooklyn. Only problem was, it didn’t have documentation proving that it actually owned the mortgage and the original lender, Ameriquest, couldn’t help because it had gone the way of the dodo a few years earlier. So what’s a mortgage servicer to do but fabricate the paperwork?
Mortgage companies apparently haven’t learned their lessons from the foreclosure fraud scandals, and continue to use automatic signatures on documents that employees never see. Last fall, major banks halted foreclosures, supposedly investigating why robo-signing was so prevalent. The banks re-started foreclosures in the winter after they re-submitted foreclosure paperwork with what they say were real signatures.
Chase is dropping thousands of pending debt collection cases against defaulted credit card borrowers, WSJ reports. Remember the big deal over robo-signing foreclosure cases a few months ago? The problem of bulk signing sloppy paperwork, and, in some case, filing fraudulent documents, could be even bigger when it comes to credit cards. It looks like JP Morgan Chase is trying to get its house in order before they’re forced to by government and legal forces.