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