The background for the agreement on foreclosure procedures is becoming apparent.
The first legal action was against the CEO of one company doing the "robo-signing"
Now the California and Nevada States' Attorney Generals have a basis for their involvement.
NY Times
By GRETCHEN MORGENSON
February 15, 2012
Audit Uncovers Extensive Flaws in Foreclosures
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Quote:
Commissioned by Phil Ting, the San Francisco assessor-recorder,
the report examined files of properties subject to foreclosure sales
in the county from January 2009 to November 2011.
About 84 percent of the files contained what appear to be clear violations of law,
it said, and fully two-thirds had at least four violations or irregularities.
<snip>
The report comes just days after the $26 billion settlement over foreclosure improprieties
between five major banks and 49 state attorneys general, including California’s.
Among other things, that settlement requires participating banks to reduce mortgage amounts
outstanding on a wide array of loans and provide $1.5 billion in reparations for borrowers
who were improperly removed from their homes.
But the precise terms of the states’ deal have not yet been disclosed.
As the San Francisco analysis points out, “the settlement does not resolve
most of the issues this report identifies nor immunizes lenders and servicers from a host of potential liabilities.”
For example, it is a felony to knowingly file false documents with any public office in California.
In an interview late Tuesday, Mr. Ting said he would forward his findings and foreclosure files
to the attorney general’s office and to local law enforcement officials.
Kamala D. Harris, the California attorney general, announced a joint investigation
into foreclosure abuses last December with the Nevada attorney general, Catherine Cortez Masto.
The joint investigation spans both civil and criminal matters.<snip>
Banks involved in buying and selling foreclosed properties appear to be aware of potential problems
if gaps in the chain of title cloud a subsequent buyer’s ownership of the home.
Lou Pizante, a partner at Aequitas who worked on the audit, pointed to documents
that banks now require buyers to sign holding the institution harmless
if questions arise about the validity of the foreclosure sale.
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