Friday, October 1, 2010

JPMorgan Halts Foreclosures, "Robo-Signers" Appear Commonplace

Following in the steps of GMAC, JPMorgan Chase has stopped foreclosures in 23 states. According to the bank, the cases may contain "defects" and "flawed paperwork." The sheer volume of foreclosure cases materializing out of the housing crisis seems to have given rise to what's being called the "robo-signers" – servicing execs that mechanically sign off on foreclosure actions without verifying their validity. One whistleblower says they are more prevalent than the industry would like to admit.