Take Heart My Beloved Desperadoes
Foreclosure Fraud Exposed
State attorneys general have stepped up pressure on banks in recent days after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, a process now known as "robo-signing."
Ohio's attorney general has filed a lawsuit against Ally Financial and its subsidiary GMAC Mortgage for allegedly submitting fraudulent documents in hundreds of foreclosure cases across the state.
Foreclosure freeze shakes battered home market
Ally declined to comment Friday when asked if they would follow Bank of America and expand their freeze.
Senate Majority Leader Harry Reid, D-Nevada, called on major mortgage servicers to consider halting foreclosures in all fifty states in a statement released Friday.
"It is only fair to Nevada home owners to suspend foreclosures until a thorough review of foreclosure processes is completed and home owners can be assured that their documents are being analyzed properly," said Reid.
Sen. Christopher Dodd, D-Conn., the chairman of the Senate Banking Committee, announced Friday that he will hold a hearing to investigate allegations of improper mortgage servicing and foreclosure processing on Nov. 16, the day after the Senate returns from recess.
On Thursday, the White House said that President Obama won't sign a bill that could have made it easier for courts to clear foreclosures. The bill would have required federal and state courts to recognize documents that were notarized in other states.
See one Judge's decision here...
WHERE IS WI'S ATTORNEY GENERAL WHO DID SUE COUNTRYWIDE?
Lenders across the country are announcing temporary foreclosure moratoria and attorneys general are calling for the same because of systemic illegal foreclosure filings and misrepresentations.
Among the latest is Illinois Attorney General Lisa Madigan, who is demanding 23 additional loan servicers provide her office with information concerning the fairness and accuracy of their foreclosure procedures in courts across the state.
Madigan recently issued a similar demand to GMAC/Ally, Bank of America and JP Morgan Chase to halt all pending foreclosures in Illinois, including post-foreclosure sales and evictions, after they admitted they were filing false documents in foreclosure proceedings.
"The same mortgage giants and big banks that fraudulently put people into unfair loans are now fraudulently throwing people out of their homes," Madigan said. "They should not be above the law."
Madigan also announced she is helping convene a multistate task force of state attorneys general and bank regulators to coordinate states' reviews of servicers' foreclosure processes.
Research demonstrates that just as minority communities were more likely to receive predatory subprime loans, they also suffer more from foreclosures. "Our research reveals that African-Americans and Latinos are almost 75 percent more likely to experience foreclosure than Whites, said Michael Calhoun, President of the Center for Responsible Lending.
"We cannot allow this injustice to continue," he added. "Mortgage servicers and lenders must work to preserve homeownership when possible; when not possible, they must follow the law when foreclosing." Moreover, the higher the concentration of racial minorities in a community,
the higher the rates of foreclosure.
Read more: http://www.consumeraffairs.com/news04/2010/10/civil-rights-groups-want-moratorium-on-foreclosures.html?utm_source=The+Daily+Consumer&utm_campaign=576ce3f97e-2010100810_8_2010&utm_medium=email#ixzz11sGCIQIY