The Real Deal Miami

Foreclosure probe could change industry

October 15, 2010 11:15AM

The joint investigation across the United States of the practices of the
mortgage industry could make mortgage companies settle allegations that
they “robo-signed” documents in foreclosing on hundreds of thousands of
delinquent homeowners. Legal experts say it is possible that lenders
could be forced to accept an independent monitor to ensure compliance
with state laws on foreclosures, and potentially pay fines and
restitution to those whose foreclosures were not done legitimately. “The
most efficient way for [banks] to get out from under this is to settle
across the board,” said Kathleen Engel, a law professor at Suffolk
University in Boston. [Palm
Beach Post]