Judges to Weigh Mortgage Document Destruction

Bankruptcy judges in Delaware are due to hold separate hearings today on requests by two defunct subprime mortgage lenders to destroy thousands of boxes or original loan documents, Reuters reported yesterday. The requests, by trustees liquidating Mortgage Lenders Network USA and American Home Mortgage, come despite intense concerns that paperwork critical to foreclosures and securitized investments may be lost. In the Mortgage Lenders case, the U.S. Attorney in Delaware has formally objected to the requested destruction because loss of the records "threatens to impair federal law enforcement efforts."


http://www.reuters.com/article/idUSTRE70M1YJ20110123?feedType=RSS&feedName=topNews