Big Banks Tell N.J. Courts to Stop Bugging Them About Foreclosure Documents

By ABIGAIL FIELD

When New Jersey tightened its rules for foreclosures in response to the false loan document crisis, it took the unprecedented step of ordering the six largest servicers — Ally Bank/GMAC, Bank of America (BAC), Citibank (C), JPMorgan Chase (JPM), Wells Fargo (WFC) and OneWest — to explain why they should be allowed to continue with their foreclosures. If any of them couldn’t adequately justify itself, New Jersey would suspend all the foreclosure actions by that bank in the state and appoint a special master to investigate its past and proposed processes.

On Jan. 5, the banks responded, and in essence each said: Look judge, we’re good guys committed to keeping people in their homes whenever possible, and while we admit we had problems — teeny tiny problems — in the past, we’ve fixed them already. 

Most of the banks’ briefs then argued, with varying degrees of aggressiveness, that the court doesn’t have the power to impose a foreclosure moratorium or appoint a special master because that would break court rules, violate New Jersey’s Constitution and the U.S. Constitution — including the banks’ due process rights — and overstep the judiciary’s role. They also claimed it was generally wrong because the banks were regulated federally. Only Chase declined to challenge the court’s authority to impose the moratorium or appoint a special master.

See full article from DailyFinance: http://srph.it/f8BNpB
~

4closureFraud.org