“The suit also seeks civil penalties of up to $50,000 per violation.”
Illinois accuses mortgage firm of robosigning
(Reuters) – The attorney general in Illinois on Thursday sued a mortgage document firm and said it filed “faulty” documents with local governments in a rush to process mortgages and foreclosures.
Nationwide Title Clearing Inc was a “key contributor” to the mortgage crisis by “undermining the integrity and accuracy of the mortgage servicing and foreclosure process,” Attorney General Lisa Madigan said in a statement.
The Palm Harbor, Florida-based firm prepares documents for mortgage servicers to use against borrowers who are in default or foreclosure.
A spokeswoman for Nationwide Title said the firm had not yet seen the lawsuit.
The lawsuit comes as Illinois and other states are close to signing an agreement with five top U.S. banks to resolve allegations of mortgage servicing and foreclosure abuses.
Those negotiations began more than one year ago, after reports emerged that workers had “robo-signed,” or signed without reading, thousands of pages of mortgage documents, which in some cases led to unlawful foreclosures.