'Robo-Signing' Mortgages Are Still Occurring

July 20, 2011

Mortgage industry employees are still signing documents they haven’t read, even nearly a year after a nationwide “robo-signing” scandal surfaced that put the validity of thousands of foreclosures into jeopardy, according to a news report by the Associated Press.

"Robo-signing is not even close to over," says Curtis Hertel, recorder of deeds in Ingham County, Mich. "It's still an epidemic."

For example, county officials in three states — Essex County, Mass., Guilford County, N.C., and Ingham County, Mich. — say that since last fall they’ve received thousands of mortgage documents with questionable signatures.

Last fall’s “robo-signing” scandal brought the nation’s largest banks — JPMorgan Chase, Bank of America, Wells Fargo, and others — to temporarily halt foreclosures while they investigated how foreclosure paperwork was being approved without following proper reviews. Federal regulators have been working over the last few months with lenders to fix their foreclosure process.

Lenders reported to the Associated Press that they are unsure why robo-signing is still occurring.

Read more about how robo-signing occurs in the mortgage industry.

Source: “New Findings: Mortgage ‘Robo-Signing’ Still Going On,” Associated Press (July 18, 2011)