Consumer Law

The Affidavit Faking Continues: Chase Suspends 56,000 Foreclosures

By Sam Glover

http://flic.kr/p/us5g

While judges were looking the other way, a new fad was apparently sweeping the mortgage lending industry: robo-signers. A robo-signer is a person whose job is to put their signature on an affidavit, regardless whether they know what they are signing or whether it is true.

First GMAC/Ally Bank “discovered” that their representatives were signing affidavits without checking their facts. It stopped its foreclosures, as a result (probably a wise move when perpetrating a fraud on the courts). Now, it looks like Chase bank has the same robo-signer problem. In fact, this is a problem in many areas of law where lawyers try to turn the courts into a rubber stamp or assembly line.

That this is happening is no surprise to anyone with any knowledge of the debt collection industry. The interesting question, though, is this: will the scandal spread to other industries where robo-signing is common?

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• GMAC Caught Faking Affidavits, Stops Foreclosures
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Full post as published by Caveat Emptor on September 30, 2010 (boomark / email).