Robo Signer Banks Appear Before Congress
By Admin
This post at the Distressed Property Institute Blog summarizes the problems that mortgage servicers and banks may face as a result of foreclosure documentation irregularities.
Some of the nation’s largest banks will appear before the Senate Banking Committee today to explain their actions regarding the “robo-signing” scandal in which lenders allegedly filed thousands of inaccurate documents in foreclosure cases. This scandal initially led to the recent foreclosure freezes by major lenders.
A 125-page report just released by the Congressional Oversight Panel may influence the conversation on Capitol Hill. Alluding to the size, scope and potential large-scale consequences of this scandal, the report said: “If documentation problems prove to be pervasive and, more importantly, throw into doubt the ownership of not only foreclosed properties but also pooled mortgages, the consequences could be severe.”
CNNMoney.com reported the overall concern is that the “banks will be forced to buy back mortgages that had been bundled and sold in the $7.6 trillion market for Residential Mortgage Backed Securities, or RMBS. That could result in severe losses for the banks and destabilize the still-fragile financial system.”
Today’s appearances will include Bank of America and JPMorgan Chase, and sessions will continue on Thursday. We’ll be sure to keep you posted on developments, what’s said, and the repercussions for real estate agents.
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See http://www.calculatedriskblog.com/2012/02/housing-bottom-is-here.html
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