Allegations Of Fraud - Major Banks Suspend Over 56,000 Foreclosures

Major banks suspend forecosures, due to Fraud allegations.

Yesterday John Walsh, Director of the Office of the Comptroller of the Currency (OCC) ordered 7 giant lenders to review their foreclosure procedures.
All the usual suspects were contacted by the OCC: JP Morgan Chase, Wells Fargo, Citibank, U.S. Bank, HSBC, PNC Bank, and Bank of America.

News reports say that JP Morgan Chase, GMAC, and B of A have already suspended foreclosures. Citi is likely to folow, along with the others.

allegations of widespread forgery, fraud, and mishandling/loss of various documents necessary to the foreclosure process on the part of various mortgage servicers. It appears that many people are being deprived of their property rights in the rush to work through the backlog of foreclosures

www.totalmortgage.com...

their employees have admitted filing false affidavits attesting to having fully reviewed each of the tens of thousands of mortgage files to make sure they had the legal right to take ownership of the homes.

Under pressure from Attorneys General in many states, including Connecticut, evictions have stopped and some if not all foreclosure actions were frozen in states were judicial reviews are required (California is an exception to that rule).

Judging by Citi’s lack of a blanket statement that it did everything properly, its likely that Citi will be following Chase and GMAC.

ctwatchdog.com...
www.thestreet.com...

As they say, this is nothing more than their greed returning to bite them on the backside. This is what happens, when corporate pushes their employees with the hope of getting a big bonus for getting the job done fast and cheap. The employees will go as far as to cheat or just out right cut corners to get that big bonus check.

Well good for them, it`s their own employees greed that puts them in the spot light.

WoW that makes 56,000 lottery winners..
and chances are they didn't even buy the ticket (make a down payment)

out of every turmoil, like the credit crisis/housing bubble there will be winners and losers.
sure wish i would have been foolish enough to sign on for a house i could not afford to keep or maintain,
then be able to avoid a foreclosure because the mortgage got diced up in pieces
and then sold to 'too many' investors, most likely all over the globe.

blind luck i'd say

reply to post by FiatLux


Yeah, imagine that! The employees probably decided they had gotten the best of the best, and it was time to turn coats.

reply to post by St Udio


Truely the luck of the draw. There must be some major skirmish going down for them to to this.
Thing is so many of these mortages were baked into deriviatives, they have changed hands so many times they can not find the documents.

Widespread fraud and mishandling of documents .... sounds like the banks alright.

This is very good news, if nothing else the banks greed has tripped them up. Not really justice for those they have already stolen from, but it stops the arbitrary lawlessness that characterises modern banking.

Let's not forget it was the Bank's greed that started this whole freaking mess.

Selling bad loans to people that couldn't afford them to begin with.

Then bundling those bad loans and selling them to corporations and pension plans.

Then starting immedate massive foreclosures that caused the real estate market to collapse along with their "secured asset".

What a bunch of idiots. It's all GREED and FRAUD.

If they hadn't started the massive foreclosures to begin with, the housing market would not have collapsed as badly.

Then after that - we bail them out? Where is the common sense? We should have let all the banks fail - then they might have had more motivation to keep people in their homes and the banks asset safe.

It's not like the value of real estate will ever go to zero - but there sure has been alot of "paper" loss of value. And there is no one to blame but the banks.

EDIT TO ADD:

Selling fraudulent loans to unsuspecting people and investors - now creating fraudlent paperwork to take them back. They are all crooks.

reply to post by harryhaller

Yeah, they took the bail out money and still cant manage to get the document process down right?
Somethings fishy in dodge.

reply to post by Julie Washington


We should have let them all fail. I so agree!
We did not really have a say in it, I remember congress "just did it"



"The paperwork problems range from potentially forged documents to bank employees who never read borrowers' files before signing off on an eviction. . . ."While we don't expect our review to find that consumers were harmed, we will take appropriate action if we find any impact," JP Morgan spokesman Tom Kelly said."

No harm perhaps except the illegal taking of thousands of homes without due process . . . .

To me this is as if the Banks just dropped the pin to a nuclear hand grenade in a darkened room, and they are searching around on their hands and knees trying to find it, before the grenade goes off.....

reply to post by freetree64


Good word picture there! It seems we have a new scandal, aptly named...
And we now have Foreclosuregate

If you work in the mortgage industry or for a title insurer, you might not want to make any plans for the next six months. Foreclosuregate is about to explode. It is being alleged that many prominent mortgage lenders have been using materially flawed paperwork to evict homeowners. Apparently officials at quite a few of these firms have been signing thousands upon thousands of foreclosure documents without even looking at them. In addition, it is being alleged that much of the documentation for these mortgages that are being foreclosed upon is either "improper" or is actually "missing". As lawyers start to smell blood in the water, lawsuits challenging these foreclosures have already started springing up from coast to coast. In fact, some are already calling Foreclosuregate the biggest fraud in the history of the capital markets. JPMorgan Chase, Ally Bank's GMAC Mortgage and PNC Financial have all suspended foreclosures in the 23 U.S. states where foreclosures must be approved by a judge. Bank of America has actually suspended foreclosures in all 50 states. Now, law enforcement authorities from coast to coast are calling for investigations into this controversy and it could be years before this thing gets unraveled.

theeconomiccollapseblog.com...