What housing problem
Big bust on the not so distant horizon. From
FOX News:
Attorneys General Investigate Bank Foreclosure Processes
Attorneys general in several states are taking action on bank officers who allegedly processed thousands of foreclosures each month without reviewing the work and then signed affidavits attesting to the necessity of the foreclosures.
Ohio Attorney General Richard Cordray said his state, one of 23 which requires affidavits by bank officers, is seeking a moratorium on foreclosures "tainted" by �robosigners� � a bank officer who under oath attests personal knowledge of the foreclosure review but who does not have that knowledge. He said he also wants financial relief for consumers and penalties against violators.
So far, the Ohio attorney general has filed suit against GMAC, parent company Ally mortgage and an individual alleged to be a robosigner. Other lenders, including Bank of America, which has admitted problems, JP Morgan, Citibank and Wells Fargo, which are suspected of the practice, are also being asked to provide information.
"What we do know is that people have filed affidavits with the court, they swear that they have personal knowledge of the facts that are attested therein. Those are the facts in which the court is depriving people of their private property. That all is supposed to be done carefully and properly under the law in this country," Cordray told Fox News.
Cordray said he would fine banks $25,000 for every mortgage at issue, which could be hundreds or even thousands of mortgages.
Need to reinstate the
Glass�Steagall Act -- break the link between investment companies and banks. Established after the great depression of the 1930's and repealed in 1999 - thank you
Bill...
Posted by DaveH at October 9, 2010 2:17 PM