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Foreclosure paperwork still being robo-signed

July 19, 2011 05:43PM

Many leading mortgage lenders are still engaging in questionable foreclosure practices such as “robo-signing,” even after they promised in March that they would end them. In recent months, servicers have filed thousands of documents that appear to have been fabricated or improperly altered, or have sworn to false facts, according to an investigation by Reuters. As of March, federal regulators had signed settlements with 14 loan servicers who promised further internal investigations, remediation for some who were harmed and a halt to the filing of false documents. The companies had claimed that all such behavior had stopped by the end of 2010. But Reuters found that at least five of those companies have recently filed foreclosure documents of questionable validity: OneWest, Bank of America, HSBC Bank USA, Wells Fargo and GMAC Mortgage. Reuters also identified at least six “robo-signers,” who in recent months have each signed thousands of mortgage assignments. These same individuals, per the report, have been identified as previously having signed vast numbers of foreclosure documents that they never read or checked. [Reuters via MSNBC]