Investigation into “Robo-Signing” and Banks foreclosure practices presses on

As more news comes out from the 50 state wide investigation into the foreclosure fraud or "robo-signing" debacle we slowly are beginning to see a possible problem that may stretch back over 3 years.



According to Tom Miller the Iowa state Attorney General the foreclosure problems possibly go deeper than just the "robo-signing" allegations and can possible pre date the recent disclosures.



In a deposition held in a local West Palm Beach court in Florida in December of 2009 an employee for GMAC, who was part of a team of 13 people, who were responsible for signing over 10,000 court affidavits, sometimes didn’t even bother to check for accuracy of the information give to them.



Question is who do we blame? Do we blame the lenders for poorly training these robo signers? Or do we blame the robo-signers themselves for perhaps not doing their job properly?



At this point the lenders are in the hot seat and the investigation will continue to press on and lawsuits will continue to be filed. This is something that has to be reviewed and handled and corrected in such a way so it never happens again.



As Tom Miller http://www.iowaattorneygeneral.org/ the attorney general of Iowa points out, one of the issues are the servicers. They were not prepared to take on the volume of loan modifications to begin with. They are not lenders and have a long way to go to be able to catch up and handle the volume of loan modification request. Most importantly and frustrating for homeowners is the fact servicers are still under staffed, have poor quality control and due to these two factors, applications and other documents end up lost. Causing more cost to themselves, the borrowers, lenders and Investors.



The overall goal of the committee which now has 12 top legal officers from varies states, to help assist in the review process of the investigation. With at least 6 committee members leaving office soon, Miller states they do not see this slowing them down and are hoping to push forward and to resolve this matter as quickly as possible. For other news on the foreclosure crises