The Niche Report published an interesting article yesterday concerning the foreclosure industry. Anyone involved in the industry is aware of the robo-signing scandal in which numerous foreclosure cases were authorized by individuals who were unaware of what they signed, signed documents without verifying information, forged signatures, or assumed fake titles in order to authorize legal documents that kept the foreclosure process moving. The whistle was blown in the Fall of 2010 and the term “robo-signing” was coined.
As a result, there have been serious repercussions, industry changes, and new regulations put in place to make sure that robo-signing is a thing of the past. But is it completely in our rear-view mirror? The Niche Report charges in the December 18th article, “From Robo-signers to Robo-witnesses: U.S. Foreclosures on the Wrong Track” that while robo-signing may be a thing of the past, robo-witnesses are here to take their place. Rick Roque explains in the article that “These robo-witnesses are essentially trained actors who show up to court with a prepared script” and questions their knowledge by stating “They will swear on the authenticity of the filings and the bank’s right to foreclose, but what do they really know about the case in question?”
The wake of the robo-signing scandal left the mortgage and banking industry in a whirlwind. Since the dust has settled, more stringent mortgage policies have been put in place, new compliance protocols enacted, and additional regulations are on the books. From process servers to attorneys and mortgage servicers, everyone has felt the backlash. We would hope that something like this wouldn’t happen again, and it seems unlikely that another public embarrassment of this magnitude could actually happen again. But then again, we’re not Miss Cleo and we don’t have a crystal ball.
What do you think about the possibility of another crisis in the mortgage/banking industry with regard to foreclosures? Weigh in on the comments, we would love to hear your opinion.0 comments