New York Chief Judge Jonathan Lippman implemented a new rule today that requires every lawyer handling a foreclosure to sign a form verifying that all paperwork in the case is accurate, the Associated Press reported. In light of the robo-signing crisis that is casting doubt on the procedures used to seize million of homes, the requirement reinforces the obligation of lawyers to ensure that the documents they present to the court are valid. “We feel we have an obligation to make sure the attorneys do their due
diligence and come to us with credible papers because the consequences
[of wrongful foreclosures] are so great,” Lippman told the New York Law Journal. There are nearly 78,000 foreclosure actions pending in New York courts. The new filing requirement goes into effect immediately. In new cases,
the affirmation must be filed along with the initial request for
judicial intervention, according to the Wall Street Journal. In pending cases, it must accompany a request for
judgment or must be submitted to the court referee if a judgment has
been entered, but the property hasn’t yet sold. [AP via Crain's] and [New York Law Journal]

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In light of the robo-signing foreclosure crisis, the Federal Reserve is working with other agencies to review practices and is actively encouraging efforts to find viable alternatives to foreclosure, according to Bill Dudley, president of the Federal Reserve. “Foreclosure is a necessary part of the housing market returning to normal conditions, but the extent of the documentation problem and its economic ramifications remain uncertain,” CNBC’s Steve Liesman said in the video above, recapping Dudley’s remarks. According to Liesman, Dudley also said that the economic situation is “wholly unsatisfactory.” Homeowners can expect increased mortgage refinancing to continue over the near term, while the housing situation will remain uncertain for the foreseeable future, Liesman said.

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