Washington Post – 7 major lenders ordered to review foreclosure procedures

CITIBANK:
It has strong training to ensure that employees in its foreclosure group are aware that they should have personal knowledge of the information in documents that require this before signing…

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That spin reminds me of, “I did not have sexual relations with that woman.” Bill Clinton

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7 major lenders ordered to review foreclosure procedures

Washington Post Staff Writer
Thursday, September 30, 2010; 10:39 PM

A top federal bank regulator said Thursday that he has directed seven of the nation’s largest lenders to review their foreclosure processes after learning about the widespread mishandling of homeowner evictions by the industry.

John Walsh, acting director of the Office of the Comptroller of the Currency, told lawmakers during a hearing on the financial regulatory overhaul enacted this summer that some lenders “clearly had deficiencies” in their system for foreclosures.

The banks contacted by regulators include J.P. Morgan Chase, which announced Wednesday that it was freezing 56,000 foreclosures after finding errors in its preparation of documents, according to OCC spokesman Kevin Mukri. Other lenders contacted include Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo.

“We both want to see that they fix the processing problems but also to look to see whether there is specific harm [that has been caused] in individual cases,” Walsh said.

Revelations about widespread paperwork problems with foreclosures led Ally Financial, another major lender, to suspend evictions last week in 23 states where a court order is required to seize a property. Since then, the industry’s handling of foreclosures has come under close scrutiny from regulators, with attorneys general in several other states calling for Ally to halt foreclosures.

The paperwork problems range from potentially forged documents to bank employees who never read borrowers’ files before signing off on an eviction.

In J.P. Morgan’s case, Mukri said the bank “determined that its affidavit procedures were non-compliant with foreclosure processing requirements in some states.” He added that although J.P. Morgan has fixed internal procedures, the “negative impact or harm to customers has not been determined at this point.”

“While we don’t expect our review to find that consumers were harmed, we will take appropriate action if we find any impact,” JP Morgan spokesman Tom Kelly said.

You can get the rest here…

No harm here Mr Kelly, just tens of thousands of people losing their homes ILLEGALLY!

Why is it every time they get caught breaking the law all they have to to is pull the document and refile a new one?

It is no different than a shoplifter getting caught walking out of a store with stolen merchandise then saying, oh you got me, here is the merchandise that I was about to steal, you can have it back, see you later and have a nice day…

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4closureFraud.org

Comments
8 Responses to “Washington Post – 7 major lenders ordered to review foreclosure procedures”
  1. Melissa says:

    So what ever happened here with the investigations in the errors? To assume its suspected no personal injuries…be discovered or revealed…perhaps interviewing actual home buyers named in the mortage documents containing errors…some details can not simply be explained in document discovery demands….

  2. S.E. Spurgeon says:

    “DON’T MAKE A PAYMENT…DON’T MAKE A PAYMENT…DON’T MAKE A PAYMENT!!!”

    Does this statement sound familiar to anyone out there? Beware…the “Sharks” are at it, again. All over the good U.S.A., where the “American Dream” is dying a fast death for millions…I repeat…MILLIONS of people across our nation!!! “Don’t make a payment”…then, at some point, after you’ve heard “We need THIS paper”…”We can’t find THAT paper”…”We can’t read THIS or THAT paper”…”We have brought in outside help to handle your loan”…or, “We have lost all or part of your paperwork”…so, you start over and over and over…but, whatever you do, “DON’T MAKE A PAYMENT”!!! After MUCH distress, on your part, you can be assured that you will be foreclosed on, because you are so far behind on the payments that they told you not to make. What an incredible scam this is for millions of Americans. When do the banks of America want bailed out, again, by the good American people??? WE bailed you out…WHY?!?!? You, KNOWINGLY, duped us and wrecked the economy…and we rewarded CEO’s, across the nation, for being CROOKS and breaking our trust in their practices!!! “Only in America”…I say, “GO TO JAIL…GO DIRECTLY TO JAIL…DO NOT PASS GO…DO NOT COLLECT YOUR MILLION DOLLAR PLUS BON– USES…YOU ARE DONE!!!!” If you agree with this, let’s see more letters to the editor in our papers and on the internet, or in any other way you can convey this message!!! “TO WHOM IT MAY CONCERN”…We ALL know who “TO WHOM IT MAY CONCERN” is, don’t we??? Americans…TAKE BACK AMERICA, NOW!!!!!!!!

  3. LUCINDA says:

    I CANT UNDERSTAND WHY SELECT PORTFOLIO SERVISING DIDNT GO UNDER WE HAD TO PUT UP WITH THERE FRAUD AND TELL US ALWAYS TO PAY 10,000 WE HAD TO PAY SPS AND THEY NEVER APPALED THE MONEY TO OUR ACC ALWAYS TELLING US TO PAY OR GET OUT, NOW OUR ACC IS LOCKED AS OF 10/4/2010,FEES LIKE CORPATE FEES,LATE FEES,FORCLOSURE FEES,ATT FEES PUTTING OUR PAYMENTS IN SUSPENCE,THE CORPATE FEE ARE 780.00 ESCORE 15,000 AND FORBEARANCE AT 1,780.OO A MONTH IM SICK OF IT THEY SHOULD BE STOPED.

  4. Flex says:

    Please my brothers and sister,

    We are going to get to the bottom of this. We just made history by making GMAC to halt foreclosures in 23 States. See what happened in only a couple of days, J.P. Morgan Chase volunteered and announced that they also will stop foreclosure in 23 States. Now, look what happened today, BofA also volunteered and announced the same. Woaw! is this a coincidence? Do you agree that the BofA execs got together and decided we better come clean now or we are fried.

    We are not going to let anyone to get away with this. We are going to investigate, to file complaints, to prosecute, and make them pay, even if they crawl to the rocks they came from.
    For all the brave people out there, this is the time to organize, to get professional help, get legal representation, and file suits against all the pretender lenders, servicers, banksters, even title companies. They are also involve in this mess, because they knew about MBS, Securitization, MERS, and all the dirty tricks the banksters and Wall St. were doing from more than a decade ago and they did not disclose a thing to the homeowners about the lenders.

    All the things that are happening now is not a secret to anyone. This has been going on for many years, but no one did anything about it. Many good lawyers, consumer advocates, senators like Marcy Kaptur, Alan Grayson, Maxine Waters, and other brave ones that I don’t remember now came forward and spoke amazingly on the homeowners side, and not to forget, the very best Judges who got it and held the law by the letter and stood righteously and made their decisions firmly in favor of the innocent, naive, and humble homeowner who the banksters has taken advantage from day one. They no only took their money, their faith, their trust, their believe in a system, their American Dream, their life, their family, their freedom, their jobs, and now their homes. What else is there to be taken by the Goliath who has it all. But we all know how to eat an elephant, right. One piece at a time. Anybody hungry for some sweet justice?

    Please reply to me if you don’t know what to do and need help. I don’t think I can market myself in this comment, but you need to do something to fight back and keep your home or get your home back if you are a victim of these unscrupulous roaches that think they can get away with everything they want just because they have all the money in the world and can control governments, people, and anything that breath oxygen.
    Please post your comments without fear, let people know what is happening to you. This is the time to take advantage and let the world know what these banksters are all about.

    I predict it will be a matter of time that all these who think are too big to fail, will be rubbles all over the ground and soon gone from the face of the earth.
    It is time to stand up and keep fighting for what you believe is right.
    I believe in God as I believe in Karma and Karma is here finally to do some justice.
    Justice will prevail,
    Alleluia!!!

    • Victim of Servicing Fraud says:

      Flex says please reply to me if you dont know what to do and need help.
      Ok, I need help! I have been a victim of servicing fraud with one of the above mentioned loan servicing agents and I have all of the documentation to prove it. What next? They are still my servicer, do not know if I should try to settle with them or pay it off and then take a civil lawsuit against them. Need advice quick! Thank you.

  5. Zoe says:

    Can you imagine the relevant and effective stimulus this country will have if millions of homeowners no longer have house payments! Massive household income will allow responsible adults to save, pay off debt, and buy a Ford!

  6. housemanrob says:

    Have you’all ever heard so much double talk crap in yor life?

  7. Alina says:

    Now that they’ve got the banks scrambling, what about the servicers such as Select Portfolio Servicing, Ocwen, American Home Mortgage, Litton, etc.? All of these guys are just as bad if not worse.

    Remember, Select Portfolio was settled a suit brought by the FTC and the State of Massachussetts for $40 million in 2007. Ocwen has also been the target of lawsuits based on their dubious practices.

    We need the investigations expanded to include all the players and all their misdeeds revealed.

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